Malaysian palm oil futures ended more than 2% higher on Monday, supported by firmer export data from cargo surveyors, bargain buying and stronger crude oil prices.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 82 ringgit, or 2.1%, to 3,987 ringgit ($978.16) a metric ton at the close.

Following a rebound in the Malaysian palm oil export performance, prices also climbed due to bargain buying, steady Dalian and Chicago futures and an upward move in energy prices, said Anilkumar Bagani, head of commodity research at Sunvin Group, a Mumbai-based brokerage.

Cargo surveyors Intertek Testing Services (ITS) estimated that exports of Malaysian palm oil products for December 1-20 rose 2.4% from a month earlier, while AmSpec Agri Malaysia’s export estimate showed a decline of 0.87%.

Dalian’s most-active soyoil contract (DBYcv1) rose 0.57%, while its palm oil contract CPO1! gained 0.94%. Soyoil prices on the Chicago Board of Trade ZL1! were up 0.47%.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices rose after officials said the U.S. had intercepted an oil tanker in international waters off the coast of Venezuela, raising fears of supply disruption.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit USDMYR, palm’s currency of trade, weakened 0.05% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Source: Reuters