Malaysian palm oil futures ended higher on Monday, after data showed exports rose in the first 15 days of the month as buyers stocked up ahead of the Muslim holy month of Ramazan, although gains were capped by uncertainty in the global markets.
Shipments of Malaysian palm oil products from June 1 to 15 jumped 18.5 percent from a month ago, cargo surveyor Intertek Testing Services (ITS) said on Saturday. Societe Generale de Surveillance (SGS) pegged the rise in shipments at 15.7 percent for the same period.
The spike in exports reflect higher purchases by India and Pakistan ahead of Ramazan in July. "This jump in export demand for palm oil products is significant because if we look at the first 15 days exports number for the past six months, this is the highest figure," said Singapore-based Phillip Futures in a note to clients, referring to the export number of 709,860 tonnes from ITS. However, the brokerage added that "unless the 2,500 ringgit level is broken on the upside, this current rally is considered as a relief rally".
The benchmark September contract on the Bursa Malaysia Derivatives Exchange gained 0.9 percent to close at 2,459 ringgit ($785) per tonne, after trading in a range between 2,439 and 2,467 ringgit. Total traded volumes stood at 20,015 lots of 25 tonnes each, well below the average 35,000 lots, as fragile sentiment ahead of this week's US Federal Reserve policy meeting kept investors on the sidelines.
Market participants fear the US central bank could announce moves to curb its stimulus programme, denting global growth and commodity demand. Malaysia, the world's No 2 palm oil producer, will set its crude palm oil export tax for July at 4.5 percent, unchanged since March, a government circular showed. In vegetable oil markets, US soyaoil for July gained 0.4 percent in late Asian trading. The most-active September soyabean oil contract on the Dalian Commodities Exchange gained 0.9 percent.
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