Palm oil continued its upward trajectory, buoyed by short coverings and the strength of the Chicago soyoil market.
During morning trade, the benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange climbed 49 ringgit, or 1.14%, reaching 4,361 ringgit ($918.11) per metric ton.
The soyoil contract on the Dalian Commodity Exchange experienced a modest uptick of 0.23%, while its palm oil counterpart surged by 2%. Meanwhile, soyoil prices on the Chicago Board of Trade saw a slight dip of 0.12%.
Palm oil prices are sensitive to movements in related oils, as they vie for market share in the global vegetable oils market.
Traders noted that India’s palm oil imports hit a ten-month low in March, totaling 481,000 tons. This decline was attributed to increased imports of sunflower oil by the leading vegetable oil buyer, driven by more favorable pricing conditions.
According to cargo surveyors Intertek Testing Services, AmSpec Agri Malaysia, and Societe Generale de Surveillance (SGS), exports of Malaysian palm oil products in March were expected to show a significant increase, ranging between 11.77% and 29.2%.
Analysts suggest that palm oil may continue its upward momentum, potentially reaching a range of 4,432 ringgit to 4,462 ringgit per metric ton.
