Palm oil prices rise as export data boosts the market

The price of Malaysian palm oil futures increased on Monday after two consecutive sessions of declines. This was due to the stronger Chicago soyoil, Dalian palm olein, and encouraging export numbers.

At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for December delivery gained 39 ringgit or 0.88% to 4,464 Ringgit ($1,060.58) per metric ton.

A Kuala Lumpur based trader reported that the prices of crude palm oil rebounded after positive export data from Intertek Testing Services.

The trader stated that prices were supported further ahead of the Globoil industry conference in Mumbai, which will be held later this week.

Intertek Testing Services, a cargo surveyor, estimated that the exports of palm oil products from Malaysia for September 1-20 increased 8.7% in comparison to the same period one month prior. AmSpec Agri Malaysia is expected to release its export estimates later today.

Dalian's palm oil contract, which is the most active contract, gained 0.17%. Chicago Board of Trade soyoil prices were up by 0.16%.

As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.

The price of oil has been steadily rising, despite the fact that the global fuel demand is expected to increase due to trade tariffs and increased supply.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

Palm's trade currency, the ringgit (the palm equivalent of the dollar), has weakened by 0.12%, making it slightly cheaper for buyers who hold foreign currencies.

Technical analyst Wang Tao stated that palm oil could retest its support at 4,401 Ringgit per metric tonne. A break below this level would open the door to the range of 4,342 to 4,366 Ringgit.

(source: Reuters)