Malaysian Palm Oil Futures Rise on Olein, Crude Oil

Malaysian Palm Oil Futures Rise on Olein, Crude Oil Support

Malaysian palm oil futures climbed on Tuesday, tracking strength from palm olein at the Dalian market, with crude oil prices also supporting trader sentiment. The benchmark palm oil contract (FCPOc3) for August delivery on the Bursa Malaysia Derivatives Exchange gained 30 ringgit, or 0.67%, to 4,503 ringgit ($1,136.83) per metric ton in early trade.

Supporting Factors

Dalian's most-active soyoil contract rose 0.11%, while its palm oil contract gained 0.89%. Soyoil prices at the Chicago Board of Trade were down 0.81%. Palm oil tracks price movements of rival edible oils. Brent crude futures rose nearly 2% in early Asian trade on Tuesday after U.S. strikes in Iran. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Export Data

According to inspection firms AmSpec Agri Malaysia and Intertek Testing Services, Malaysian palm oil exports for May 1–25 fell 18.0% and 14.5%, respectively, from April 1-25 levels. In March, Indonesia exported 2.17 million metric tons of palm oil products, down from 2.88 million metric tons in the year-ago period, according to GAPKI.

Technical Outlook

Palm oil (FCPOc3) may climb into a range of 4,543 ringgit to 4,584 ringgit per metric ton, as it has more or less cleared a resistance at 4,502 ringgit, according to Reuters' technical analyst Wang Tao.