KUALA LUMPUR: Malaysian palm oil futures climbed for a second straight session on Thursday, as stronger soyoil and robust demand from key export markets supported the bullish sentiment in the market. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 62 ringgit, or 1.41 percent, to 4,450 ringgit (USD1,058.26) a metric ton at the close.
Crude palm oil traded higher on overnight strength in the soybean oil market, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
“The recent strong export performance also lifted market sentiment. We see prices supported above 4,400 ringgit and resistance at 4,550 ringgit,” he said. Cargo surveyors had estimated that exports of Malaysian palm oil products for September rose between 7.3 percent and 9.6 percent from a month earlier.
Soyoil prices on the Chicago Board of Trade were up 0.3 percent. The Dalian Commodity Exchange is closed from October 1 to 8 for holidays. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices edged lower, extending a run of declines into a fourth day due to concerns about oversupply in the market. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, remained unchanged against the U.S dollar.
Indonesia exported 16.20 million tons of crude and refined palm oil over the January to August period, up 13.56 percent from the same period last year, the statistics bureau said.