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.

Tags: soyoil, Malaysia, palm oil, futures, benchmark contract