(Jan 18): Malaysian palm oil futures rose tracking an improved Chinese Dalian soybean oil performance and as physical prices for crude palm oil (CPO) remained firm.
The palm oil contract for April on the Bursa Malaysia Derivatives Exchange rose 0.2% to RM2,469 (US$562.03) per tonne at the end of the trading day. Palm had earlier hit RM2,495 per tonne, its highest in nearly three weeks since the start of the year.
Traded volume stood at 35,074 lots of 25 tonnes each.
"The market rise is most likely due to Dalian's strength and firm physical pricing," said a trader from Kuala Lumpur, referring to physical CPO prices.
"Frankly, I'm expecting a drop in the market later as there's nothing much to sustain a strong rise."
Another trader said a weaker Malaysian currency on Monday could have also helped boost palm prices.
The ringgit had weakened to 4.4170 per dollar on Monday before gaining by nearly 0.1% against the dollar in the evening. A weaker ringgit lends support to palm prices, as it makes the tropical oil cheaper for holders of foreign currencies.
Palm oil may break a resistance at RM2,495 per tonne, and rise more to the next resistance at RM2,535, said Wang Tao, Reuters market analyst for commodities and energy technicals.
In related markets, US crude futures hit their lowest since 2003 on Monday, as the market braced for a jump in Iranian exports after sanctions against the country was lifted.
The May soybean oil contract on the Dalian Commodity Exchange rose 0.8%.
Palm, soy and crude oil prices at 1005 GMT
| Contract | Month | Last | Change | Low | High | Volume |
| MY PALM OIL | FEB6 | 2351 | +2.00 | 2349 | 2370 | 405 |
| MY PALM OIL | MAR6 | 2417 | +5.00 | 2414 | 2438 | 6477 |
| MY PALM OIL | APR6 | 2469 | +5.00 | 2467 | 2495 | 17060 |
| CHINA PALM OLEIN | MAY6 | 4696 | +50.00 | 4630 | 4724 | 1368502 |
| CHINA SOYOIL | MAY6 | 5576 | +44.00 | 5500 | 5594 | 697838 |
| CBOT SOY OIL | MAR6 | 29.65 | +3.20 | 0.00 | 0.00 | 0 |
| INDIA PALM OIL | JAN6 | 424.90 | +3.20 | 422.50 | 425.90 | 780 |
| INDIA SOYOIL | JAN6 | 614.00 | +1.05 | 613.90 | 617.60 | 4170 |
| NYMEX CRUDE | FEB6 | 29.20 | -0.22 | 28.36 | 29.33 | 30469 |
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
(US$1 = RM4.3930)
(US$1 = 67.7100 Indian rupees)
(US$1 = 6.5779 Chinese yuan)
(US$1 = 67.7100 Indian rupees)
(US$1 = 6.5779 Chinese yuan)
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