Export data shows palm oil gains over stronger competitors, and palm oil is a better alternative to edible oils
The price of Malaysian palm oil futures increased on Monday. This was largely due to the stronger crude oil and edible oils, as well as positive export data.
By midday, the benchmark contract for palm oil delivery in April on the Bursa Derivatives exchange had gained 22 ringgit or 0.53% to 4,197 Ringgit ($1,057.71).
A Kuala Lumpur-based trader stated that "today's palm prices were supported by favorable January 1-25 export and production data."
Dalian's palm oil contract gained 0.79% while the most active soyoil contract increased by 1.19%. Chicago Board of Trade soyoil prices were up by 0.59%.
As palm oil competes to gain a share of the global vegetable oil market, it 'tracks' price movements in rival edible oils.
Intertek Testing Services, a cargo surveyor, reported on Sunday that Malaysian palm oil exports from January 1-25 were up 9.97% compared to a month ago. They reached 1,163,634 tons.
Oil prices continued to rise after gaining?more? than 2% the previous session. Tensions between the U.S.
Palm oil is more attractive as a biodiesel feedstock due to the stronger crude oil futures.
The palm ringgit's currency for?trade has strengthened by 0.87% against dollars, making it more expensive to buyers with foreign currencies.
Technical analyst Wang Tao believes that palm oil could revisit its high of 4,214 Ringgit per ton from January 22nd, since a correction at this level may have ended near the support level of 4,149 Ringgit.
(source: Reuters)
