Palm jumps 1.5% on stronger related oils

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KUALA LUMPUR (April 2): Malaysian palm oil futures rose 1.5% on Tuesday, tracking gains in related edible oils and on prospects of lower stockpiles due to better exports.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 1.5% at RM2,144 (US$525.23) a tonne at the midday break, its highest in a week.

The contract also posted its sharpest intraday gain in two weeks and was headed for a second straight session of gains.

"Palm took cues from overnight gains in soybean oil futures," said a Kuala Lumpur-based futures trader, adding that March export data from cargo surveyors also supported the market.

"Exports are good, it is possible that end-stocks will reduce."

Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia said on Monday Malaysia's palm oil exports in March rose around 22% from the previous month.

Another cargo surveyor, Societe Generale de Surveillance, reported a monthly rise of 28.1%.

Strong gains in exports could help reduce stockpiles in Malaysia, which rose to their highest in nearly two decades in December. Stockpiles had risen unexpectedly in February, by 1.3% to 3.05 million tonnes.

Official March data from the Malaysian Palm Oil Board is scheduled for release on April 10.

In other related oils, the Chicago May soybean oil contract gained 0.7% on Monday on optimism about a trade deal with China after the US Agriculture Department said private exporters reported the sale of 828,000 tonnes of soybeans to China. It was up 0.3% on Tuesday.

Meanwhile, the May soyoil contract on the Dalian Commodity Exchange edged up 0.3%, and the Dalian May palm oil contract rose 1%.

Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.

Palm, soy and crude oil prices at 0443 GMT

Contract          Month    Last  Change     Low   High   Volume
MY PALM OIL       APR9     2029  +20.00    2020   2029       66
MY PALM OIL       MAY9     2106  +27.00    2090   2107     1493
MY PALM OIL       JUN9     2144  +31.00    2124   2144     9688
CHINA PALM OLEIN  MAY9     4380  +42.00    4330   4386   222366
CHINA SOYOIL      MAY9     5408  +16.00    5376   5418   156748
CBOT SOY OIL      MAY9    28.66   +0.09   28.53  28.75     2041
INDIA PALM OIL    APR9   533.00   +6.30  529.40  534.3      462
INDIA SOYOIL      APR9      732   +2.90   727.1    732     1020
NYMEX CRUDE       MAY9    61.74   +0.15   61.67  62.02    50518

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel

(US$1 = RM4.0820)
(US$1 = 6.7188 Chinese yuan)
(US$1 = 69.2860 Indian rupees)