Palm oil prices rise with soyoil as the market waits for key data about production and price projections

Malaysian palm futures continued to rise on Monday. This was supported by soyoil, a rival oil, in the Chicago and Dalian market. The?market awaits data from the Malaysian Palm Oil Board (MPOB) and the Price Outlook Conference.

By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for April delivery had gained 30 ringgit or 0.72% to 4,184 Ringgit ($1,063.01), a metric tonne.

A trader in Kuala Lumpur said that the market would follow Dalian's?lead up until tomorrow's MPOB data, and POC's outlook for future leads.

Dalian's soyoil contract, which is the most active one, was up by 0.17%. Palm oil?contract traded at a flat rate. Chicago Board of Trade soyoil prices rose by 1.63%.

As palm oil competes to gain a share of the global vegetable oils market, it tracks the price movements of its rival edible oils.

The MPOB will release its monthly data on 10 February, while the POC will be held from 9-11 February.

A survey shows that Malaysia's palm-oil inventories will end their 10-month streak of rising stocks in January as exports increased during a slowdown?in production due to the season.

Oil prices fell by 1% on Monday, as investors were reassured that there would be no supply disruptions after U.S.-Iran pledged to keep talking about Tehran's nuclear program over the weekend.

Palm oil is less appealing as a biodiesel feedstock because crude oil futures are weaker.

The palm ringgit's currency has strengthened by 0.23% to the dollar. This makes the commodity more expensive for buyers who hold foreign currencies.

Technical analyst Wang Tao said that palm oil FCPOc3 could break through a support level of 4,148 ringgit for a metric ton and drop towards 4,083 rings.

(source: Reuters)