Palm oil rises in third session due to firm Chicago crude, soyoil and exports

Malaysian palm oil futures rose on Monday for the third consecutive'session,' boosted by higher Chicago soyoil & crude oil prices. Meanwhile, robust export figures continued to support a positive market sentiment.

By midday, the benchmark palm oil contract on Bursa Derivatives exchange for June delivery was up 36 Ringgit or 0.78% at 4,667 Ringgit ($1,160.95).

David Ng is a proprietary 'trader' at Kuala Lumpur based trading firm Iceberg X Sdn Bhd.

The recent strong export performance also lifted the sentiment higher. Ng said, "We see prices above 4,600 Ringgit and resistance at 4,750 Ringgit."

Exports of palm oil products from Malaysia for the period?March 1-25 increased between?38.4% to 50.6% on a monthly basis, according to cargo?surveyors. The full-month export estimates for March are due Tuesday.

Dalian's palm oil contract, which is the most active contract, increased by 0.64%. Chicago Board of Trade soyoil prices rose by 0.92%.

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

The oil prices continued to rise. Brent is on track for a monthly record after the Yemeni Houthis launched a 'first attack on israel over the weekend. This increased the U.S. and Israeli war against Iran in the Middle East.

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

The palm ringgit's currency has weakened by 0.17% against dollars, making it cheaper for buyers holding foreign currencies.

Separately India's market regulator extended the suspension on?derivatives trade in seven key agricultural products, including crude palm oils, until March-end next to reign in prices.

(source: Reuters)