Malaysian palm oil futures rose on Monday, snapping two straight sessions of losses, underpinned by strong export data and weak output growth.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 1.46% to close at 4,249 ringgit ($899.64) a metric ton by midday break. The contract lost around 2% in the past two sessions.
"Crude palm oil futures are up on improved export figures as well as lower production figures," a Kuala Lumpur-based trader said.
Exports of Malaysian palm oil products for March 1-25 are expected to increase between 13.8% and 21.2%, compared to shipments during February 1-25, cargo surveyors Intertek Testing Services and AmSpec Agri said on Monday.
The news that Indonesia, the world's biggest palm oil producer, is mulling revising the domestic market obligation (DMO) policy for cooking oil by linking it to production instead of exports is also supporting the price, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
"If it happens then it would be bullish for the prices as the production growth is at ease in Indonesia, which means the export would be tighter," he said.
Dalian's most active soyoil contract was down 0.84%, while its palm oil contract was up 0.60%. Soyoil prices on the Chicago Board of Trade gained 0.83%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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