KUALA LUMPUR (Reuters) - Malaysian palm oil futures rose to a two-week high in early trade on Thursday on better demand for the edible oil, set to gain for the fourth straight day as they tracked gains in soyoil on the U.S. Chicago Board of Trade.
Benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was last up 1.4% at 2,073 ringgit ($498.68) a tonne.
The market earlier rose to 2,075 ringgit, its strongest level since May 2. Palm is also up 4.5% so far for the week, in line to chart its first week of gains in four.
“The market is supported by the continuation of good exports,” said a Kuala Lumpur-based trader, referring to the export data reported by cargo surveyors on Wednesday.
Malaysian palm oil shipments rose between 4% and 15% during May 1-15 from the corresponding period last month, according to data from three cargo surveyors, Amspec Agri Malaysia, Intertek Testing Services and Societe Generale de Surveillance.
Another trader added that palm prices were supported by continuous gains in competing vegetable oils. The Chicago July soybean oil contract had gained 0.9% on Wednesday, after U.S. President Donald Trump eased concerns over the U.S.-China tariff war, and was last up 0.4% on Thursday.
Palm oil prices are affected by movements in soyoil, with which it competes for global market share.
Palm oil may rise to 2,091 ringgit per tonne, as it has cleared a resistance at 2,034 ringgit, said Reuters market analyst for commodities and energy technicals Wang Tao.
Meanwhile, the May soyoil contract on the Dalian Commodity Exchange was up 0.6%, and the Dalian May palm oil contract jumped 2.6%.
($1 = 4.1570 ringgit)
($1 = 70.2850 Indian rupees)
($1 = 6.8763 Chinese yuan)
Reporting by Emily Chow; editing by Rashmi Aich