Palm oil prices end 4-day losing streak on stronger soyoil, Asian equities

KUALA LUMPUR: Malaysian palm oil futures snapped four straight sessions of decline to rise on Tuesday, buoyed by stronger prices of rival soyoil and tracking cheer in Asian markets on positive economic data from China.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange advanced 13 ringgit, or 0.56%, to 2,354 ringgit ($550.39) a tonne by the midday break.

Asian shares rose after data showed China's manufacturing sector grew more than expected in June, a hopeful sign for a global economy still struggling to recover from the sweeping impact of the coronavirus crisis.

Malaysia's palm oil exports in June rose 29% from the previous month, according to cargo surveyors.

"Prices remain on a tight range, with the exports numbers falling within market expectations," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.

"There are also rumors that the tariff for palm oil will be increased by $20-$25 in India," he said. India is the world's biggest importer of edible oil.

Dalian's most-active soyoil contract rose 0.53%, while its palm oil contract gained 0.97%. Soyoil prices on the Chicago Board of Trade also climbed 0.67%.

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 retest a support at 2,318 ringgit per tonne, a break below which could cause a fall to 2,283 ringgit, Reuters technical analyst Wang Tao said.