28/05/2024 (Business Recorder), Kuala Lumpur - Malaysian palm oil futures rose on Tuesday to close over 2% higher after two straight sessions of falls, as gains in rival Dalian and Chicago oils and an improving export outlook underpinned the market.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 93 ringgit, or 2.40%, at 3,963 ringgit ($844.63) per metric ton.

Malaysian palm oil futures were seen trading sharply higher, following a bullish momentum in Dalian contracts and Chicago Board of Trade soyoil futures, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

“The market has shrugged off the losses from Monday, as exports are seen better than expected, while the production pace has started to ease,” Bagani said.

Dalian’s most-active soyoil contract gained 1.66%, while its palm oil contract added 1.99%. Soyoil prices on the Chicago Board of Trade were up 1.18%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil edges up on better export estimates, firmer crude oil prices:

Malaysian palm oil exports for May 1-25 rose between 2.4% and 3.1% from the month before, according to cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.

Cargo surveyor Societe Generale de Surveillance estimated the exports at 949,451 tons, compared with 931,938 tons a month earlier, according to LSEG.

Indonesia exported 2.56 million tons of palm oil products in March, up from 2.17 million tons in February, its palm oil association said.

Global oil prices steadied on Tuesday as the prospect of OPEC+ maintaining oil supply curbs at its June 2 meeting and hopes of strong U.S. summer fuel demand balanced concern about higher-for-longer U.S. interest rates. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, strengthened 0.06% against the dollar, making the commodity more expensive for buyers holding the foreign currency.

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