Palm rises on good export expectations, Dalian’s soyoil

Malaysian palm oil futures rose on Tuesday as the market found support from expectations of good export numbers and stronger Dalian soyoil.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 27 ringgit, or 0.6 per cent, to 4,540 ringgit (US$1,074.81) a metric ton in early trade.

The market was shut on Monday on account of a local holiday.

Exports of Malaysian palm oil products for October 1-20 rose 3.4 per cent to 1,044,784 metric tons from 1,010,032 metric tons shipped during September 1-20, cargo surveyor Intertek Testing Services said on Monday.

Dalian’s most-active soyoil contract added 0.29 per cent, while its palm oil contract shed 0.04 per cent. Soyoil prices on the Chicago Board of Trade were up 0.06 per cent.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Chicago Board of Trade soybean futures hit their highest level in a month on Monday on renewed optimism over US-China trade talks after US

Oil prices fell on Tuesday on concerns about excess supply and risks to demand stemming from tensions between the US and China, the world’s top two oil consumers, even as President Donald Trump said he expected to reach a trade deal.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, traded flat against the dollar. A weaker ringgit would make the commodity less expensive for buyers holding foreign currencies.

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