Palm oil climbs 2% to record high of over 5,200 ringgit

October 21, 2021: Malaysian palm oil futures rose to a record high of 5,208 ringgit a tonne on Thursday, lifted by a rally of global edible oils and further supported by signs of improving demand.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 137 ringgit, or 2.7%, to 5,208 ringgit ($1,253.43) a tonne during early trade, rising for a second consecutive session.

FUNDAMENTALS

Exports of Malaysian palm oil products for Oct. 1-20 fell 14.7% from the same week in September, an improvement from a 18% decline seen during Oct. 1-15, according to data from cargo surveyor Intertek Testing Services.

Dalian's most active soyoil contract rose 4.2%, while its palm oil contract 4.5%. Soyoil prices on the Chicago Board of Trade were 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.

Oil prices rose to extend gains from the previous session as U.S. crude and fuel inventories tightened further, making palm a more attractive option for biodiesel feedstock.

Palm oil may rise towards a 5,187-5,274 ringgit range, as it has broken a resistance zone of 5,032-5,048 ringgit per tonne, Reuters technical analyst Wang Tao said.

Reuters