Palm oil rises on firmer rivals

August 11, 2022: Malaysian palm oil futures climbed on Thursday, supported by a bullish run in rival oils and data that showed exports of palm oil products surged in the first 10 days of the month.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange climbed as much as 3.1% to 4,237 ringgit ($953.42) per tonne during early trade.

FUNDAMENTALS

Exports of Malaysian palm oil products for August 1-10 rose around 10% monthly, cargo surveyors said on Wednesday. 

Malaysia's end-July palm oil stocks expanded to an eight-month peak on the back of improving production and soaring imports, data from industry regulator Malaysian Palm Oil Board showed on Wednesday. 

Rival Indonesia exported 2.33 million tonnes of palm oil and its refined products in June, helping ease its stock to 6.68 million tonnes by end-June, from 7.23 million tonnes in May, Indonesia Palm Oil Association said on Thursday. 

Dalian's most-active soyoil contract DBYv1 was up 0.38%, while its palm oil contract DCPcv1 rose 1.30%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.68%.

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 test a resistance at 4,269 ringgit per tonne, a break above which may lead to a gain to 4,452 ringgit, Reuters technical analyst Wang Tao said. 

MARKET NEWS

Asian shares tracked Wall Street higher on Thursday after a softer-than-expected U.S. inflation report encouraged bets of less aggressive rate hikes from the Federal Reserve, while the dollar remained bruised after its biggest plunge in five months.

Reuters