Palmettos rise on Dalian gains, export data and good production data
The market for Malaysian palm oils futures continued to rise on Tuesday. This was due to the increase in rival edible oils traded at the Dalian Exchange, as well as a good export and lower production.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for April delivery had gained 10 ringgit or 0.24% to 4,235 Ringgit ($1,072.15) per metric tonne.
A Kuala Lumpur based trader stated that the market was tracking Dalian's strength, its good export and lower production in order to sustain this rally.
Dalian's most-active palm oil contract grew by 2.09%, while the soyoil contract grew by 0.54%. Prices of soyoil on the Chicago Board of Trade fell by 0.56%.
Palm oil monitors 'the price movements' of rival edible oils as it competes to gain a share in the global vegetable oils markets.
Intertek Testing Services, a cargo surveyor, reported that Malaysian palm oil exports from January 1-25 were up 9.97% on a monthly basis. AmSpec Agri Malaysia, an independent inspection company in Malaysia reported an increase of 7.97%.
The palm ringgit's trade currency strengthened by 0.33% compared to the dollar, increasing the price of the commodity for buyers who hold foreign currencies.
The price of oil?fell? on Tuesday, despite a major winter storm that affected crude production in the U.S. Gulf Coast and refineries.
Palm oil is less appealing as a biodiesel feedstock because crude oil futures are weaker.
Technical analyst Wang Tao stated that palm oil FCPOc3 could retest resistance at 4,272 Ringgit per metric tonne. A break above this level would lead to gains in the range of $4,316 to 4,343 Ringgit.
(source: Reuters)
