Palm oil jumps over 1% on hopes of lower June stockpiles

Dalian's most-active soyoil contract rose 0.83%, while its palm oil contract gained 0.76%.

Agencies
The Malaysian Palm Oil Board is scheduled to release its June supply and demand data on Friday.
KUALA LUMPUR: Malaysian palm oil futures rose more than 1% on Monday, on prospects of lower June inventories and as rival soybean oil advanced to a four-month high.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 31 ringgit, or 1.31%, to 2,389 ringgit ($558.18) a tonne during early trade.

Malaysia's palm oil stocks at end-June likely dropped 2% to 1.99 million tonnes from the previous month, mainly due to higher exports, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note on Monday.


The Malaysian Palm Oil Board is scheduled to release its June supply and demand data on Friday.

Palm declined 0.42% last week, its second straight weekly fall, on concerns demand will be hit amid a surge in coronavirus infections.

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Dalian's most-active soyoil contract rose 0.83%, while its palm oil contract gained 0.76%.

Soyoil prices on the Chicago Board of Trade were up 1.5% as concerns about hot and dry weather in a key U.S. growing region pushed prices to a more than a four-month high.

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 resistance at 2,395 ringgit per tonne, as it has stabilized around a support at 2,339 ringgit, Reuters technical analyst Wang Tao said.

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