Malaysian palm oil futures rose on Thursday tracking crude and rival soyoil, while improving May exports also buoyed sentiment.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 25 ringgit, or 1.20%, to 2,185 ringgit ($502.30) by 0300 GMT.
Malaysia is committed to maintaining its good relations with India and increasing diplomatic and trade ties, Malaysia’s plantation industries and commodities minister said.
Malaysian palm oil exports rose more than expected over May 1-20, jumping between 11.6% and 14.2% from the previous month, cargo surveyors said.
Oil prices edged higher after data showed U.S. crude inventories fell again, easing concerns about a supply glut. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Dalian’s most-active soyoil contract rose 0.74%, while its palm oil contract was up 0.13%. Soyoil prices on the Chicago Board of Trade were trading 0.18% lower.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm may test a support at 2,140 ringgit, as it could have completed a bounce from 1,939 ringgit, Reuters technical analyst Wang Tao said.