Palm prices rise on higher soyoil and crude oil prices
Malaysian palm oil futures prices rose on Monday, after three straight sessions of falling. They were boosted by higher soyoil and crude?oil?prices.
By midday, the benchmark palm oil contract for July delivery on the 'Bursa Malaysia derivatives exchange had gained 46 ringgit or 1.02% to 4,551 Ringgit ($1,159.20).
The market rose during Asian hours on the back of higher soybean oil and crude prices, according to David Ng, a proprietary trading at Kuala -Lumpur based trading firm Iceberg X Sdn. Bhd.
He said that prices are supported above 4,500 Ringgit and there is resistance at 4,680 Ringgit.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price movement of its rival edible?oils.
Dalian's palm oil contract grew 0.08%, while the most active soyoil contract climbed 0.46%. Prices of soyoil on the Chicago Board?of?Trade rose by 0.97%.
Crude oil prices rose a day after Donald Trump called Iran's response "unacceptable" to the U.S. proposal. This heightened supply concerns as the Strait of Hormuz was largely closed and kept the global market tight.
Palm oil is a better option for biodiesel because crude oil futures are stronger.
The Malaysian Palm Oil Board reported that April's palm oil stock in Malaysia increased by 1.71% compared to the previous month, reaching 2.31 million metric tonnes. Production grew?18.37%, but exports fell 14.34%.
Intertek Testing Services, a cargo?surveyor, estimated that exports for Malaysian palm oil product from May 1-10 increased 8.5% compared to a month ago. AmSpec Agri Malaysia, an independent inspection company will release their?estimates at a later time.
The palm ringgit's trade currency, the dollar, has weakened by 0.2%, making the commodity slightly cheaper for buyers with foreign currencies.
Technical analyst Wang Tao stated that palm oil could break through a support level of 4,482 Ringgit per metric tonne and drop into a range between 4,410-4,452 Ringgit.
(source: Reuters)
