Palm recovers after five days on stronger soyoil, export data optimism

Palm recovers after five days on stronger soyoil, export data optimism
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JAKARTA (Sept 29): Malaysian palm oil futures rose on Thursday (Sept 29), after plunging to a near 20-month low in the previous session, as gains in rival oils and expectations for solid export data boosted sentiment.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange jumped by 4.25% to RM3,363 per tonne by midday break, heading for its best day in over two weeks.

The contract fell more than 17% in the previous five sessions, hitting its lowest level since early February 2021 on Wednesday.

"Today is a correction day on the back of slightly supportive external market, weak ringgit and potentially better export data tomorrow," a Kuala Lumpur-based palm oil trader said.

Traders are awaiting cargo surveyors' September exports data of Malaysian palm oil products on Friday.

For the Sept 1-25 period, exports rose between 18.6% and 20.9% from a month ago, cargo surveyors said. 

Dalian's most-active soyoil contract rose 0.95%, while its palm oil contract slid 0.39%. Soyoil prices on the Chicago Board of Trade gained 0.93%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

The Malaysian ringgit slipped to a record low, as the strong US dollar continued to weigh on most Asian currencies.

Weaker ringgit makes palm oil cheaper for buyers holding the US currency.

Palm oil is expected to bounce into a range of RM3,360 to RM3,427 per tonne, as it has found support at RM3,243 per tonne, Reuters technical analyst Wang Tao said.