Malaysian palm oil futures rose for a second straight session on Monday, buoyed by stronger rival edible oils and crude oil prices.
The benchmark palm oil contract (FCPOc3) for September delivery on the Bursa Malaysia Derivatives Exchange gained 24 ringgit, or 0.53%, to 4,592 ringgit ($1,131.03) a metric ton in early trade.
FUNDAMENTALS
* Dalian's most-active soyoil contract (DBYcv1) rose 0.49%, while its palm oil contract CME:CPO1! added 0.77%. Soyoil prices on the Chicago Board of Trade (BOcv1) were up 0.31%.
* Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
* Oil prices rose following days of tit-for-tat strikes by the United States and Iran in the Middle East that underscored the fragility of their interim peace deal and again slowed energy shipping in the Strait of Hormuz. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* Cargo surveyors are expected to release their estimates for Malaysian palm oil product exports for June on Tuesday.
* The ringgit FX_IDC:USDMYR, palm's currency of trade, strengthened 0.61% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
* Palm oil may retrace into a range of $4,517 to $4,538 ringgit per metric ton before resuming its rise, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks wobbled on Monday as Iran and the United States agreed to halt recent hostilities that had cast a shadow over an interim peace deal, with oil prices buoyed by uncertainty and the dollar standing tall near a one-year high.MKTS/GLOB
DATA/EVENTS
0900 EU Consumer Confid. Final Jun
($1 = 4.0600 ringgit)