Palm hits three-week high on rival oil strength

Malaysian palm oil futures rose for a second session on Thursday, hit their highest levels in three weeks, supported by gains in Dalian palm oil, as market participants wait for October 1-20 export data.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 22 ringgit, or 0.58%, to 3,832 ringgit ($805.04) a metric ton by midday.

“Today’s crude palm oil futures market is firm on the back of steady Dalian palm market as well as anticipation of better export data tomorrow,” a Kuala Lumpur-based trader said.

Cargo surveyor Societe Generale de Surveillance (SGS)estimated exports of Malaysian palm oil products for Oct. 1-15 at 665,876 metric tons.

Meanwhile, Malaysian palm oil exportsfor Oct. 1-15 estimated rose between5.6% and7.3% from a month earlier, according to independent inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services.

Dalian’s most-active soyoil contract DBYcv1 fell 0.34%, while its palm oil contract DCPcv1 was up 0.19%. Soyoil prices on the Chicago Board of Trade BOc2 lost 0.09%.

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 support of 3,768 ringgit per metric ton, a break below which could open the way towards 3,720-3,729 ringgit.
Source: Reuters (Reporting by Bernadette Christina; Editing by Subhranshu Sahu and Sohini Goswami)