Palm oil futures rose on Monday, marking the fifth consecutive session of gains, driven by data from cargo surveyors indicating a significant increase in July exports. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange climbed 8 ringgit, or 0.2%, to 3,696 ringgit ($789.57) per metric ton in early trading.
Exports of Malaysian palm oil products from July 1-20 surged, with AmSpec Agri Malaysia reporting a 41.4% increase to 1,002,572 tonnes compared to 708,873 tonnes from June 1-20. Similarly, Intertek Testing Services noted a 39.2% rise, with exports reaching 1,062,238 metric tons up from 763,129 metric tons during the same period in June.
Oil prices also rose early on Monday as investors anticipated a rate-cut cycle expected to begin as soon as September. The strengthening crude oil futures made palm oil a more appealing option for biodiesel feedstock.
In related markets, Dalian’s most-active soyoil contract gained 1.1%, and its palm oil contract rose 0.8%. Soyoil prices on the Chicago Board of Trade also increased by 1.1%. Palm oil prices are influenced by movements in related oils as they compete in the global vegetable oils market.
According to Reuters technical analyst Wang Tao, palm oil is likely to break resistance at 3,962 ringgit per metric ton and rise into the range of 3,977 ringgit to 3,995 ringgit.
The continued rise in palm oil futures reflects a combination of increased export demand and favourable market conditions in related commodities, suggesting a potentially strong performance in the near term.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
