Palm oil climbed 2.95 per cent in the previous session to clock in a 3.5 per cent weekly rise after Malaysia.
Malaysian palm oil futures rallied 2 per cent on Monday, tracking gains in crude and soybean oil, while signs of growing demand as more countries ease coronavirus restrictions helped boost sentiment.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 43 ringgit, or 2.06 per cent, at 2,132 ringgit ($490.00) per tonne by the midday break.
Palm oil climbed 2.95 per cent in the previous session to clock in a 3.5 per cent weekly rise after Malaysia, the world’s second-largest producer, slashed its crude palm oil export duty to zero for June.
“It has enabled sellers to offer the commodity at reasonable discount over Indonesian offers,” Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.
“Malaysia’s May 1-15 palm oil export shows a steady increase as the palm oil prices are attracting fresh demand due to lucrative levels and ease in coronavirus-related lockdown in some countries,” he added.
Malaysia’s palm oil exports in May 1-15 rose between 6 per cent and 7 per cent from the previous month, cargo surveyors said on Friday.
Malaysia is set to meet petroleum companies on Tuesday to discuss the postponement of its B20 biodiesel mandate, the Commodities Ministry said on Monday.
Oil prices jumped by more than $1 a barrel to their highest in more than a month, supported by ongoing output cuts and signs of gradual recovery in fuel demand.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Dalian’s most-active soyoil contract rose 0.85 per cent, its palm oil contract jumped 1.89 per cent. Soyoil prices on the Chicago Board of Trade were also trading up 0.98 per cent.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may break a resistance at 2,107 ringgit per tonne, and rise towards a range of 2,129 ringgit to 2,165 ringgit, Reuters technical analyst Wang Tao said.