JAKARTA: Malaysian palm oil futures reversed losses to close higher on Monday, tracking stronger edible oils at Dalian and Chicago, while firmer crude oil prices also supported prices.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed at 4,488 ringgit (USD1,064.77) a metric ton, having gained 40 ringgit, or 0.9 percent.
Dalian’s most-active soyoil contract gained 0.19 percent, while its palm oil contract rose 0.11 percent. Soyoil prices on the Chicago Board of Trade (CBOT) gained 0.96 percent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices climbed more than USD 1 on Monday, regaining some of last week’s losses, after OPEC+’s output hike was seen as modest and due to concerns over the possibility of more sanctions on Russian crude.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Meanwhile, China’s soybean imports rose to 12.28 million metric tons, or 1.15 percent year-on-year, the highest-ever for the month of August, customs data showed on Monday.
Malaysia’s palm oil inventories are forecast to rise for a sixth consecutive month in August, as production continues to outpace exports despite a recovery in demand, a Reuters survey showed.
The ringgit, palm’s currency of trade, firmed 0.12 percent against the dollar, making the commodity slightly expensive for buyers holding foreign currencies.
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