Malaysian palm oil price snaps losing streak on stronger exports, soyoil

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 1% at 2,177 ringgit ($520.69) per tonne at the close of trade. It earlier rose as much as 1.7% to an intraday high of 2,192 ringgit.

KUALA LUMPUR: Malaysian palm oil futures rose nearly 2% in the second half of Tuesday’s trading session, supported by gains in soyoil on the U.S. Chicago Board of Trade and stronger export data from cargo surveyors.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 1% at 2,177 ringgit ($520.69) per tonne at the close of trade.

It earlier rose as much as 1.7% to an intraday high of 2,192 ringgit.

Palm oil had previously seen three consecutive sessions of losses, though it was up 0.6% last week.

Malaysian palm oil exports rose 8.7% between August 1-20 versus the corresponding period last month, reported Intertek Testing Services.

Meanwhile, another surveyor AmSpec Agri Malaysia said shipments rose 13% in the same period. In other related oils, U.S. soyoil futures on the Chicago Board of Trade were last up 0.7%, in line with gains in soybean prices.

U.S. grains saw some gains on Tuesday, recouping some of the previous session’s heavy losses, as a U.S. crop tour forecast below-average yields after a wet spring delayed plantings.

Meanwhile, the September soyoil contract on the Dalian exchange was last up 0.2% on Tuesday, while the Dalian September palm oil contract rose 0.8%. Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market. – Reuters

Source : The Star