Malaysian crude palm oil futures rose on Monday, following strong exports last month and after US Federal Reserve chief Ben Bernanke kept the door open for further stimulus that could prop up global growth and support commodity demand. Palm oil exports posted a gain of 18 percent in August from a month ago to the highest level this year, cargo surveyor Intertek Testing Services said on Friday, in part boosted by the edible oil's huge discount to competing soyoil.
"Exports were very good, the market is going for a temporary upward trend," said a trader with a foreign commodities brokerage in Malaysia. "Bear in mind that soyoil is still trading at a premium over palm oil of $285. All these factors are a plus for palm oil."
The benchmark November 2012 contract on the Bursa Malaysia Derivatives Exchange rose 1.8 percent to close at 3,073 ringgit ($985) per tonne. Futures posted a loss of 1.6 percent last week, snapping two straight weeks of gains.
Total traded volume stood at 31,968 lots of 25 tonnes each, higher than the usual 25,000 lots. Technicals look bearish as palm oil is expected to end its current rebound in a resistance zone of 3,050 to 3,067 ringgit, followed by a drop towards 2,978 ringgit, said Reuters analyst Wang Tao.
But market sentiment remained positive on healthy export demand for palm oil and after the minutes of the last meeting of Fed policymakers suggested the central bank was leaning towards further stimulus to boost the economy. Exports surged to 1.45 million tonnes in August, bolstered by higher shipments of crude products and a demand recovery in major food buyers China and India. Another cargo surveyor, Societe Generale de Surveillance, will delay issuing August exports data to Tuesday.
Crude oil was almost flat on Monday after Chinese data showed a deepening slowdown in the world's biggest energy consumer, but prices were supported by hopes of global stimulus measures as central banks try to revive economic growth. In other vegetable oil markets, the most active January 2013 soyoil contract on the Dalian Commodity Exchange ended 2.4 percent higher after hitting a contract-high. The US soybean futures markets were closed for the Labour Day holiday.
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