KUALA LUMPUR: Malaysian palm oil futures rose on Monday, extending gains to a fifth session on the back of cargo surveyor data showing a surge in July exports.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange climbed 8 ringgit, or 0.2%, to 3,696 ringgit ($789.57) a metric ton in early trade.
Fundamentals
Exports of Malaysian palm oil products for July 1-20 rose 41.4% to 1,002,572 tonnes from 708,873 tonnes shipped during June 1-20, independent inspection company AmSpec Agri Malaysia said on Saturday.
Exports of Malaysian palm oil products for July 1-20 rose 39.2% to 1,062,238 metric tons from 763,129 metric tons shipped during June 1-20, cargo surveyor Intertek Testing Services said on Saturday.
Oil prices rose in early trade on Monday as investors keep a lookout for signs of a rate-cut cycle expected to begin as soon as September.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Dalian’s most-active soyoil contract gained 1.1%, while its palm oil contract rose 0.8%. Soyoil prices on the Chicago Board of Trade were also up 1.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil is biased to break resistance at 3,962 ringgit per metric ton and rise into 3,977 ringgit to 3,995 ringgit range, Reuters technical analyst Wang Tao said.