Kuala Lumpur: Malaysian palm oil futures rose 3% cent on Monday, tracking sharp gains in Dalian palm oil and rival soy oil, with higher July exports also supporting prices.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange advanced 3.06% to RM2,759 per tonne, its third straight day of gains.
The contract rose 16.5% in July, the most in a month since September 2015.
Malaysia’s palm oil exports in July rose 5.8% from June, cargo surveyor Intertek Testing Services said.
Dalian’s most-active soy oil contract rose 2.49%, while its palm oil contract was up 3.47%. Soyoil prices on the Chicago Board of Trade also gained 0.94%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Indonesia’s plans to raise the bio-content of its palm oil-based biodiesel to 40% – known as B40 – is back on schedule with a target for implementation by July 2021.
Palm oil may test a resistance at RM2,703 per tonne, a break above which could lead to a gain to RM2,756, technical analyst Wang Tao said. – Aug 3, 2020, Reuters
