KUALA LUMPUR: Malaysian palm oil futures edged higher on Tuesday, building on sharp gains in the previous session as market talk raised expectations of higher exports in the month so far, with a rise in Dalian oil contracts also helping sentiment.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 12 ringgit, or 0.41%, to 2,904 ringgit ($ 701.79) during 0238 GMT.
Palm hovered at a near eight-month high hit on Monday.
Cargo surveyors are scheduled to release export volume data from Malaysia for Sept. 1 to 15 later in the day.
The market is expecting exports to rise between 10% and 12% from August, traders said on Monday.
Crude palm oil prices are likely to decline in the next few months as yields and output increase, due to gradual realisation from better weather conditions and seasonality, Fitch Ratings said on Tuesday.
Palm oil imports into the European Union and Britain in the 2020/21 season totalled 1.29 million tonnes by Sept. 13, up 4.9% from the previous season, official EU data showed on Monday.
Dalian’s most-active soyoil contract rose 1.49%, while its palm oil contract gained 1.85%. Soyoil prices on the Chicago Board of Trade were up 0.38%.
Palm oil is affected by price movements in related oils as it competes for a share of the global vegetable oils market.
Palm oil may break a resistance at 2,910 ringgit per tonne and rise toward a range of 2,946-3,003 ringgit, Reuters technical analyst Wang Tao said.
Asian shares looked set to open lower on Tuesday as investors shifted focus to upcoming data and central bank meetings although positive developments around potential COVID-19 vaccines and increased deal activity are likely to stem losses.
Major oil industry producers and traders are forecasting a bleak future for worldwide fuel demand, due to the coronavirus pandemic’s ongoing assault on the global economy.