Malaysian palm oil futures rose for a third straight session on Wednesday, though trading was cautious ahead of the release of official May supply and demand data, and cargo surveyors’ export numbers for the first 10 days of this month.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.38%, to 2,397 ringgit ($562.02) a tonne by 0236 GMT, tracking strength in rival soyoil.
Oil prices fell as an industry report showed a rise in crude and fuel inventories in the United States, renewing concerns about oversupply and slumping fuel demand in the world’s largest crude consumer.
Weaker crude makes palm a less attractive option for biodiesel feedstock.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may fall to 2,342 ringgit per tonne, as suggested by its wave pattern and a retracement analysis, Reuters technical analyst Wang Tao said.