Palm oil rises for third straight session, tracks rival oils higher
Malaysian palm oil futures climbed for a third straight session on Tuesday, supported by strength in Dalian and Chicago vegetable oils, although gains were limited by a drop in exports so far this month.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgit, or 1.09%, to 4,252 ringgit ($950.81) a metric ton by midday.
“Bursa Malaysia CPO tracking gains in Dalian Commodity Exchange and some bargain hunting as well but firmer ringgit capping gains,” a Kuala Lumpur-based trader said, adding that market participants also awaited production update for Jan. 1-20 period.
Dalian’s most-active soyoil contract rose 1.02%, while its palm oil contract was up 0.52%. Soyoil at the Chicago Board of Trade gained 0.2%.
Palm oil tracks price movements in rival edible oils as it competes for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for Jan. 1-20 are estimated to have fallen between 18.2% and 23%, according to cargo surveyors Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
Palm oil may retest support at 4,106 ringgit per metric ton, as a bounce triggered by this barrier may have completed.
Further development of the grain sector in the Black Sea and Danube region will be discussed at the 23 International Conference BLACK SEA GRAIN.KYIV on April 24 in Kyiv.
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