Palm oil firms on hopes of higher partial export data

November 15, 2021: Malaysian palm oil futures extended gains for a second straight session on Monday, underpinned by hopes of sustained exports ahead of cargo surveyor data.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 27 ringgit, or 0.55%, to 4,962 ringgit ($1,192.79) a tonne during early trade.

FUNDAMENTALS

* Cargo surveyors are scheduled to release data on Malaysia's exports during Nov. 1-15 later in the day, with market talk pegging an increase in shipments.

* Dalian's most-active soyoil contract rose 0.6%, while its palm oil contract gained 0.7%. Soyoil prices on the Chicago Board of Trade were down 1%.

* 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 retest a resistance at 4,998 ringgit per tonne, a break above could lead to a gain to the 5,048-5,101-ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian shares edged higher, as Chinese economic data surprised on the high side, challenging wagers the economy was stuck in a downturn although a decline in mainland house prices was a worry.

* Crude oil prices skidded under pressure from expectations of higher supplies and weakening demand.

Reuters