Malaysian palm oil futures rose to a near two-week high on Thursday as better-than-expected exports lured investors back to the futures market, although lingering fears of a potential stock build-up capped gains. Exports in the first 25 days of April rose a surprise 5.2 percent to 1,123,129 tonnes from a month ago, according to cargo surveyor data. Shipments of crude palm oil nearly doubled and demand from Europe and India picked up.
“The (palm) market today is up on the back of the friendly exports report and bean oil markets,” said a trader with a foreign commodities brokerage in Kuala Lumpur. The benchmark July contract on the Bursa Malaysia Derivatives Exchange rose to 2,326 ringgit ($764) in early Asian trade, the highest since April 12. It closed at 2,308 ringgit, up 0.8 percent. Prices traded in a tight range between 2,302 and 2,326 ringgit.
Total traded volumes stood at 24,489 lots of 25 tonnes each, lower than the average 35,000 lots. Technicals showed palm oil is expected to rise more to 2,347 ringgit, as it has cleared a resistance at 2,310 ringgit, Reuters market analyst Wang Tao said. The US soyoil for July delivery rose 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange edged up 0.1 percent.
