Palm oil rises tracking soyoil, but export concerns linger
06/05/2024 (XM), Singapore - Malaysian palm oil futures closed higher on Monday, tracking gains in rival soyoil prices, although concerns around key producer Malaysia's exports weighed.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange was up 19 ringgit, or 0.49%, at 3,863 ringgit ($815.50) a metric ton at closing.
Dalian's most-active soyoil contract DBYcv1 rose 0.76%, while its palm oil contract DCPcv1 gained 0.24%. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 0.93%.
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"Palm oil was seen trading in a tight range today as the Chinese markets reopened after Labour Day holidays," said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
Although a weaker ringgit against the dollar supports the market, Malaysia's palm oil exports from May 1 to 5 is expected to be sharply down, adding weight to palm prices, Bagani added.
The Malaysian ringgit MYR=, palm's currency of trade, hit an intraday low of 4.74, weakening 0.04% against the dollar.
Malaysia's exports of palm oil products in April were estimated to have declined 7.79% month-on-month amid stiff price competition from other edible oils, a Reuters survey showed on Friday.
Palm oil may rise this week towards the resistance levels of RM3,930-3,950 per ton this week, with support at RM3,680-3,700 per ton, LSEG said in a research report published on Monday.
($1 = 4.7370 ringgit)