Palm prices and export demand are on the rise.

The market was supported by higher palm olein and export demand.

By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for November delivery had gained 37 ringgit or 0.82% to 4,548 Ringgit ($1,077.47).

David Ng is a proprietary trader with Kuala Lumpur's Iceberg X Sdn Bhd. He said that the price of crude palm oil has risen above 4,500 ringgit due to a recent increase in demand for palm oil.

Cargo surveyors estimate that exports of palm oil during August 1-15 increased between 16.5% to 21.3% compared to a month ago.

The trader stated that palm prices were also boosted by the higher palm olein price during Asian hours.

Dalian's palm oil contract, which is the most active contract in Dalian, rose by 2%. Chicago Board of Trade soyoil prices were down by 0.51%.

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

After the Friday meeting between the two presidents, the United States didn't put more pressure on Russia by taking further measures to disrupt Russian exports to stop the Ukraine conflict.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

The palm ringgit's trade currency, the dollar, fell by 0.26%, making the commodity more affordable for buyers who hold foreign currencies.

Technical analyst Wang Tao stated that palm oil could test resistance at 4,509 Ringgit per ton. A break above this level would lead to gains in the range of 4,563 to 4,596 Ringgit.

(source: Reuters)