Palm prices surge on higher Chicago soyoil and crude oil prices, according to export data

The 'Malaysian Palm Oil Futures' gained over 1% on Thursday after two sessions in which they had lost ground. This was aided by a stronger Chicago Soyoil and Crude Oil prices, as well as 'robust export data.

By midday, the benchmark palm oil contract on Bursa Derivatives exchange for June delivery was up 74 Ringgit or 1.65% to 4,570 Ringgit ($1,145.08).

Anilkumar bagani, head of commodity research at Sunvin Group in Mumbai, said that crude palm oil futures had been trading strongly higher. This was due to gains in Chicago soyoil as well as a rebound?in energy prices.

Exports of palm oil rose by between 38.4% to 50.6% from March 1-25, according to cargo surveyors.

Bagani added that the?prospective increase in Indonesian palm oil export taxes for April also contributed to the gains.

He added that palm oil's discount against gas oil has also increased, making it more appealing as a feedstock for biofuels.

Dalian's palm oil contract grew by 0.63%, while the most active soyoil contract increased by 0.77%. Chicago Board of Trade soyoil prices were up by 0.36%.

Palm oil monitors the price movements of competing edible oils as it competes to?get a share of the global vegetable oils market.

On concerns that prolonged fighting in the Middle East would further disrupt energy flow, oil rose by more than $1 per barrel, recovering losses from the previous session.

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

The ringgit, which is the palm industry's currency of trade, has weakened by 0.73% against dollars, making the commodity more affordable for foreign buyers. $1 = 3.9910 ringgit (Reporting and editing by Ashley Tang, Sherry Jacob Phillips and Sonia Cheema).

(source: Reuters)