Palm oil prices rise by more than 2% due to stronger export data and bargain buying

Malaysian palm oil futures closed more than 2% higher on Monday. This was supported by stronger export data, bargain-buying and stronger crude oil prices.

The benchmark contract for palm oil delivery in March on the Bursa Derivatives Market gained 82 Ringgit or 2.1% to $3,987 ringgit (US$978.16) per metric ton.

Anilkumar bagani, the head of commodity research for Sunvin Group in Mumbai, explained that prices rose due to bargain-buying, stable Dalian and Chicago contracts, and a rise in energy prices.

Intertek Testing Services, a cargo surveyor, estimated that exports of Malaysian palm olein products from December 1-20 were up 2.4% compared to a month ago.

Dalian's palm oil contract, which is the most active contract, gained 0.94%. Chicago Board of Trade soyoil prices were up by?0.47%.

Palm oil monitors the price changes of other edible oils as it competes to gain a share in the global vegetable oils market.

Oil prices jumped after officials said the U.S. intercepted a tanker in international water off the coast?Venezuela. This sparked fears of a supply disruption.

Palm oil is more appealing as a biodiesel feedstock because crude oil futures are stronger.

The ringgit (palm's trade currency) has weakened by 0.05% in relation to the dollar. This makes the commodity cheaper for foreign buyers. ($1 = 4.0760 ringgit)

(source: Reuters)