Palm rises further on soy oil strength, export data awaited
24/08/2022 (Business Recorder), Jakarta - Malaysia’s palm oil futures rose for a fourth straight session on Wednesday, tracking gains in soy oil prices amid concerns over weak US output, while investors awaited domestic export data for further cues.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange had risen 1.58% to 4,301 ringgit ($958.76) a tonne by the midday break. Palm oil rose on the back of “spillover strength” from rival edibles oils on the US and Chinese exchanges, a trader in Kuala Lumpur said.
Soyoil prices on the Chicago Board of Trade were up 0.66%, while Dalian’s soyoil contract gained 2.24% and its palm oil contract rose 2.21%. Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Chicago grains futures extended gains, as a tour of key growing areas in the Midwest raised concerns that the size of the US corn and soybean crops will fall below expectations.
Palm oil may retest resistance at 4,269 ringgit
Meanwhile, traders awaited cargo surveyor data for Malaysian palm oil exports during Aug. 1-25 as production this month is seen rising. Export data for Aug. 1-20 were mixed, with two cargo surveyors saying shipments dropped on a monthly basis, while one reported a growth.
Palm oil may test a resistance at 4,452 ringgit per tonne, a break above which could lead to a gain to 4,680 ringgit, Reuters technical analyst Wang Tao said.