Palm rises on stronger soyoil, crude oil prices

KUALA LUMPUR: Malaysian palm oil futures rose on Monday after falling for three consecutive sessions, buoyed by stronger soyoil and crude oil prices. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgit, or 1. 02%, to 4, 551 ringgit ($1, 159. 20) a metric ton by the midday break. The market traded higher on stronger soybean oil and crude oil prices during Asian hours, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd. “We see prices supported above 4, 500 ringgit and resistance at 4, 680 ringgit, ” he said. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Dalian’s most-active soyoil contract rose 0. 46%, while its palm oil contract edged up 0. 08%. Soyoil prices on the Chicago Board of Trade were up 0. 97%. Crude oil prices rallied, a day after President Donald Trump said Iran’s response to a U. S. proposal was “unacceptable, ” raising supply fears as the Strait of Hormuz stayed largely closed, keeping the global market tight. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. Malaysia’s April palm oil stocks rose 1. 71% from the previous month to 2. 31 million metric tons, while production surged 18. 37% and exports dropped 14. 34%, the Malaysian Palm Oil Board said. Cargo surveyor Intertek Testing Services estimated that exports of Malaysian palm oil products for May 1-10 rose 8. 5% from a month earlier, while independent inspection company AmSpec Agri Malaysia will release its estimates later in the day. The ringgit, palm’s currency of trade, weakened 0. 2% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies. Palm oil may break a support at 4, 482 ringgit per metric ton, and fall into the 4, 410-4, 452 ringgit range, Reuters technical analyst Wang Tao said.

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