KUALA LUMPUR: Malaysian palm oil futures rose to their highest level in nearly a month on Tuesday and are set to extend a three-day winning streak, tracking higher rival soy oil and crude prices.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange rose 58 ringgit, or 2.12%, to 2,796 ringgit ($674.55) a tonne during 0242 GMT, its highest since Aug. 4.
Palm oil logged a 2.3% monthly rise on Friday, its second straight monthly gain.
FUNDAMENTALS
Exports of Malaysian palm oil products for August fell 13.1% to 1,491,422 tonnes from 1,716,980 tonnes shipped during July, cargo surveyor Intertek Testing Services said on Monday.
Palm oil imports into the European Union and Britain in the 2020/21 season stood at 998,000 tonnes, up 3% from the previous season, official EU data showed on Monday.
Indonesia’s oil and gas company PT Pertamina estimates the country’s total sales of palm oil-based biodiesel will be at 28.2 million kilolitres (KL) this year, 30% lower than last year’s sale.
Dalian’s most-active soyoil contract rose 0.06%, while its palm oil contract gained 0.51%. Soyoil prices on the Chicago Board of Trade were up 1.16%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices rose, reversing overnight losses, as investors shifted to risk assets and out of the safe-haven U.S. dollar.
Stronger crude makes palm a more attractive option for buodiesel feedstock.
MARKET NEWS
Asian stocks were set to weaken on Tuesday following a softer Wall Street close, while the dollar slipped as markets digested new Federal Reserve comments that suggested rates will stay low for an extended period.