Palm rises for third day on gains in related oils, export data expectation
Malaysian palm oil futures rebounded in the afternoon session on Wednesday, posting a third straight day of gains, as related oils lend strength and amid expectation of firm Nov. 1-25 export data.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange gained 2.50% to close the afternoon session at 4,104 ringgit ($897.64) per tonne.
“Our market was up, influenced by external strength also anticipation of good export for the month up to 25th,” a Kuala Lumpur-based trader said.
Exports of Malaysia’s palm oil products in the Nov. 1-20 period rose between 2.9% and 9.6% from a month earlier, data from cargo surveyors showed earlier this week.
Dalian’s most-active soyoil contract DBYv1 posted a 0.55% gain, while its palm oil contract DCPv1 rose 2.13%. Soyoil prices on the Chicago Board of Trade BOc2 were up 0.27%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm was see-sawing during the day, losing as much as 0.52% before the afternoon rebound, with some market participants previously taking profit amid concerns of impact of COVID-19 lockdown in China on demand for palm oil.
A rise in the number of new COVID-19 infections in China prompted the commercial hub of Shanghai to abruptly cancel an auto industry event on Wednesday, creating more uncertainty about the reopening plans of the world’s second largest economy.
Source: Reuters (Reporting by Fransiska Nangoy; Editing by Rashmi Aich, Eileen Soreng and Maju Samuel)