JAKARTA: Malaysian palm oil futures climbed for a second straight session on Thursday as rival oils rallied, although concerns of weak demand capped gains.
Having risen as much as 2% during the day, the benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed 1.3% higher at 2,680 ringgit ($642.69), extending the previous session's 1.2% gain.
Malaysian palm prices trailed rival oils at the Dalian Commodity Exchange higher, a palm trader in Kuala Lumpur said.
The soyabean oil contract for January delivery rose 2.4% on the Dalian Commodity Exchange, while its January palm oil contract gained 2.3%.
Prices of palm oil are affected by movements in related oils as they compete for a share in the global vegetable oils market.
However, concern over weak demand persisted, the trader added.
"August exports will be low," the trader said, adding this would keep prices in check.
Data of partial August exports released by cargo surveyors this week showed around a 14% to 16% monthly decline in shipments of palm.
Palm oil still targets a range of 2,548-2,577 ringgit per tonne, as suggested by its wave pattern and a projection analysis, Reuters analyst Wang Tao said. Resistance is at 2,654 ringgit, a break above which could lead to a gain into the 2,678-2,701 ringgit range.—Reuters
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