JAKARTA: Malaysian palm oil futures closed up for the second straight session on Thursday, supported by the strength in Dalian’s market and the released surveyors’ export data.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 26 ringgit, or 0.59%, to 4,415 ringgit ($997.97) a metric ton at the close.
“The futures rose on the back of Dalian while waiting for export data to lead the market later,” a Kuala Lumpur-based trader said earlier in the day. Dalian’s most-active soyoil contract fell 0.62%, while its palm oil contract gained 0.93%. Soyoil prices on the Chicago Board of Trade (CBOT) were down 0.73%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market. According to independent inspection company AmSpec Agri Malaysia on Thursday, exports of Malaysian palm oil products for March 1 - 20 fell 5.0%, while according to cargo surveyor Intertek Testing Services it fell 14.2%.
Indonesia will raise its palm oil export levy to 4.5%-10% of the crude palm oil reference price from 3%-7.5% to finance a mandated increase in the amount of oil used in biodiesel, a plantation fund official said on Tuesday.
Malaysia has maintained its April export tax for crude palm oil at 10% and raised its reference price, a circular on the Malaysian Palm Oil Board website said.
Oil prices rose on Thursday, boosted by a strong outlook for demand in the United States after fuel inventories fell more than expected, and a weaker US dollar. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.16% against the US dollar, making the commodity more expensive for buyers holding foreign currencies.
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