JAKARTA: Malaysian palm oil futures rose on Tuesday, taking cues from Dalian’s palm oil prices, to regain some of their losses during overnight trade.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 0.38% to 4,252 ringgit per metric ton during early trade.
Palm oil tracks rival oils higher, extends winning streak
The contract posted a 0.47% gain by the end of Monday’s afternoon trade, but reversed direction to lose 1.19% in the overnight trade.
Fundamentals
Dalian’s palm oil contract rose 0.29%, heading for its tenth session of gains, while its soyoil contract and soyoil prices on the Chicago Board of Trade were little changed.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia maintained its export tax for crude palm oil at 8% for April and raised its reference price, according to Malaysian Palm Oil Board.
Exports of Malaysian palm oil products for March 1-15 were up 8.4% from shipments in February 1-15, independent inspection company AmSpec Agri Malaysia said, while cargo surveyor Intertek Testing Services recorded a 3.3% increase in the same period.
Palm oil may fall into a range of 4,158-4,190 ringgit per metric ton, following its failure to break resistance at 4,326 ringgit.