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
|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|
|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|
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)