Palm oil climbs more than 2% on expectations of higher May exports

KUALA LUMPUR: Malaysian palm oil futures jumped on Wednesday after a long holiday for Eid celebrations, buoyed by expectations of higher May exports.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange had climbed 47 ringgit, or 2.22%, to 2,214 ringgit ($508.38) as of 0243 GMT.

FUNDAMENTALS
Malaysia's exports for May 1-25 are likely to have risen 5%, according to Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics. Cargo surveyors are scheduled to release May 1-25 export data later in the day.


Dalian's most-active soyoil contract rose 0.77%, while its palm oil contract gained 0.53%. Soyoil prices on the Chicago Board of Trade were down 0.73%.

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

Palm oil looks neutral in a range of 2,140 to 2,203 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares shed some of their recent gains on Wednesday as investor concerns about rising tensions between the United States and China tempered optimism about a reopening of the world economy.