Export data shows palm oil gains over stronger competitors, and improved export figures.
The price of palm oil in Malaysia ended Monday higher, supported by stronger crude oil and edible oil rivals, as well as positive export data.
The benchmark palm-oil contract for April delivery at the Bursa Derivatives Exchange rose 49 ringgit or 1.17% to 4,224 Ringgit ($1,065.86), a metric tonne, as of the close.
A Kuala Lumpur based trader stated that "today's palm prices were supported favourable export data and production for the period of January 1-25."
Dalian's palm oil contract, which is the most active contract in Dalian, gained 1.97% while soyoil prices rose 1.66%. Prices of soyoil on the Chicago Board of Trade rose by 0.24%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks 'price movements' of rival edible oils.
Intertek Testing Services, a cargo surveyor, said that Malaysian palm oil exports from January 1 to 25 rose by 9.97% when compared with a month ago. AmSpec Agri Malaysia, an independent inspection company reported corresponding increases of 7.97%.
Oil prices extended gains after rising more than 2% the previous session, as tensions between Iran and the U.S. kept investors on edge despite the fact that Kazakhstan's main export pipe resumed full operations.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm currency, the ringgit, has strengthened by 1% in relation to the dollar. This makes the product more expensive for foreign buyers. $1 = 3.9630 Ringgit (Reporting and editing by Subhranshu sahu, Shailesh kuber).
(source: Reuters)
