Palm oil hits record high buoyed by rival oils, talks of Indonesia’s export curbs

JAKARTA — Malaysian palm oil futures hit a record high on Monday, rising for a fourth straight session, buoyed by gains in rival oil prices and talks of export restrictions by top producer Indonesia.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange was up 0.71% at 5,360 ringgit ($1,281.38) a ton by midday break.

It scaled a new all-time high of 5,380 ringgit earlier in the day.

The contract posted a fifth straight weekly gain last week amid lingering output concerns and talks of export control by Indonesia.

Indonesia starting Jan. 24 required palm oil exporters to get shipments approvals from the trade ministry. Meanwhile, the government is also discussing a plan to limit exports of the vegetable oil, an industry group said.

“Market is still waiting for Indonesian government to determine the portion of exports,” a Kuala Lumpur-based palm oil trader said, adding that palm was also tracking rival oils higher.

Dalian’s most-active soyoil contract rose 0.80%, while its palm oil contract gained 1.21%. Soyoil prices on the Chicago Board of Trade were up 0.16%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Elsewhere, oil prices jumped on Monday as geopolitical tensions in Eastern Europe and the Middle East heightened concerns about an already tight supply outlook, while OPEC and its allies continued to struggle to raise their output.

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

Palm oil may break a resistance at 5,366 ringgit per ton and rise towards 5,484 ringgit, Reuters technical analyst Wang Tao said. —