KUALA LUMPUR: Malaysian palm oil futures snapped two consecutive sessions of declines on Monday, as stronger Chicago soyoil and Dalian palm olein supported the market on encouraging export figures.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 17 ringgit, or 0.38%, to 4,442 ringgit ($1,057.62) a metric ton at the close.
Crude palm oil prices rebounded as Chicago soyoil and Dalian palm olein recovered following positive export data, a Kuala Lumpur-based trader said.
“Prices were further supported ahead of the industry Globoil conference in Mumbai later this week,” the trader said.
Cargo surveyors estimated that exports of Malaysian palm oil products for September 1-20 rose between 8.3% and8.7% compared with the same period a month earlier.
Dalian’s most-active soyoil contract rose 0.36%, while its palm oil contract gained 0.21%. Soyoil prices on the Chicago Board of Trade were down 0.47%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices were little changed as concerns over Russia and the Middle East were countered by oversupply jitters.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit palm’s currency of trade, strengthened 0.1% against the dollar, making the commodity slightly expensive for buyers holding foreign currencies.
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