Palm oil rises for fifth day on higher Dalian oils, strong exports

KUALA LUMPUR: Malaysian palm oil futures inched up on Monday, rising for a fifth straight session tracking stronger Dalian oils and higher September exports so far.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 0.26% to 3,088 ringgit a tonne by 0231 GMT, its highest level since Jan. 13.

Palm gained 9.6% last week and logged its sharpest weekly rise in five years, as China increased purchases ahead of a week-long holiday starting Oct. 1.

Exports of Malaysian palm oil products for Sept. 1-20 rose 9.4% to 1,035,041 tonnes from the month before, cargo surveyor Intertek Testing Services said on Sunday.

Indonesia, the world’s top palm oil producer, exported 3.13 million tonnes of palm oil in July, including refined products, the Indonesian Palm Oil Association (GAPKI) said on Sunday.

Dalian’s most-active soyoil contract rose 1.98%, while its palm oil contract gained 2.27%. Soyoil prices on the Chicago Board of Trade were up 0.26%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may break a resistance at 3,097 ringgit per tonne, and rise into a range of 3,133-3,191 ringgit, Reuters technical analyst Wang Tao said.

Asian shares held to tight ranges on Monday, as did currencies, as investors awaited developments on U.S. fiscal stimulus and coronavirus vaccines amid a resurgence of infections in Europe.