Palm tracks rival soyoil higher ahead of export data

October 20, 2021: Malaysian palm oil futures rose on Wednesday, reopening after a one-day public holiday, with prices jumping on firmer soyoil and tight supply worries ahead of Oct 1-20 export data.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 59 ringgit, or 1.19%, to 5,003 ringgit ($1,204.53) a tonne during early trade.

FUNDAMENTAL

Cargo surveyors are scheduled to release Oct 1-20 export data later in the day. Traders are expecting exports to remain low after shipments during Oct. 1-15 saw an 11%-18% monthly decline.

The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated Oct. 1-15 production in some parts of Malaysia declined 0.2% from the month before, traders said on Monday.

Dalian's most active soy oil contract rose 0.3%, while its palm oil contract gained 0.2%. Soyoil prices on the Chicago Board of Trade were also up 0.3%.

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 zone of 5,032-5,048 ringgit per tonne, a break above which could lead to a gain into a range of 5,187-5,274 ringgit, Reuters technical analyst Wang Tao said.

Reuters