Malaysian palm oil futures jumped on Wednesday evening, supported by gains in overseas rival oils prices and a rise in October exports. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange was up 1.01 percent at 2,805 ringgit ($662.49) a tonne at the end of trade. Traded volumes stood at 61,389 lots of 25 tonnes each by the end of the session.
"The rise in rival oils from the midday sessions supported the rise in palm," said a Kuala Lumpur-based futures trader. Movements in related oils impact palm prices as they compete for a share in the global vegetable oils market. The December soyabean oil contract on the Chicago Board of Trade (CBOT) rose by 0.6 percent on Wednesday.
The January soyabean oil contract on the Dalian Commodity Exchange gained 1 percent on Wednesday. Meanwhile the January palm olein contract climbed by 0.6 percent. Although the Malaysian Palm Oil Association (MPOA) released higher production figures, the trader said the market was not stirred as it was already factored in. "The MPOA data release for October 1-20 shows production is up by 10.5 percent, which is expected and therefore, not affecting the market. This sentiment is supported by steady exports," said a trader.
Cargo surveyor Intertek Testing Services said on Wednesday that exports of Malaysian palm oil products for October 1-25 rose 8.6 percent to 1,177,939 tonnes from 1,085,116 tonnes shipped during September 1-25. Additionally, cargo surveyor, Societe Generale de Surveillance said on Wednesday exports of Malaysian palm oil products for October 1-25 rose 8.3 percent to 1,197,237 tonnes from 1,105,555 tonnes shipped during September 1-25. Another trader added that market sentiment may be partly lifted by weather concerns that would negatively affect palm production at the end of this year.
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