JAKARTA: Malaysian palm oil futures traded sideways on Monday, following rival vegetable oils, while the market awaits Malaysian Palm Oil Board (MPOB) data and export figures.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained RM1, or 0.02 per cent, to RM4,869 (US$1,116.74) a metric tonne during the midday break.
"The futures seem to be following Dalian palm oils support. We will establish our lead once the MPOB and export data are out. For the time being it should be tracking leads from rival oils," a Kuala Lumpur-based trader said.
Dalian's most-active soyoil contract rose 1.43 per cent, while its palm oil contract gained 0.98 per cent. Soyoil prices on the Chicago Board of Trade were up 0.11 per cent.
Palm oil tracks price movements of rival edible oils as it competes for a share in the global vegetable oils market.
Oil prices extended gains on Monday, rising more than US$1 on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a week that spans a U.S. presidential election and a key meeting in China.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.34 per cent against the U.S. dollar, making the commodity more expensive for buyers holding foreign currencies.
Cargo surveyors estimate exports of Malaysian palm oil products rose between 11.5 per cent and 13.7 per cent in October, compared with a month earlier.
Indonesia raised its crude palm oil reference price for November to US$961.97 per metric ton from US$893.64 in October, a trade ministry official told Reuters. The new price will put the export tax for November at US$124 per ton.
Palm oil may surge into the RM4,936-RM5,023 per metric tonne range, driven by a powerful wave C, Reuters' technical analyst Wang Tao said.