KUALA LUMPUR: Malaysian palm oil futures edged up on Tuesday tracking an overnight rise in rival soyoil, though the increase may be capped in the absence of other feel-good factors.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was up 0.3 percent at 2,163 ringgit ($522.97) a tonne at noon.
Trading volumes stood at 12,819 lots of 25 tonnes each.
"Palm is higher borrowing strength from overnight rise in its rival oilseed," a Kuala Lumpur-based trader said, adding that the lack of other positive factors may cap the climb.
Another trader concurred that overnight soyoil prices were supportive for palm but rising stockpiles continue to be worrisome, keeping the futures contract range-bound at 2,137-2,200 ringgit per tonne.
Malaysian palm oil inventories rose to a seven-month high of 2.49 million tonnes in August, official data from a Malaysian industry regulator showed.
Industry analyst Dorab Mistry also pegged Malaysia's peak end-stocks at 3-3.3 million tonnes for the year, while estimating that Indonesia's inventories are currently close to 5 million tonnes and will keep rising.
In other related oils, the Chicago September soybean oil contract was last down 0.3 percent.
The Dalian January soybean oil contract and January palm oil contract were untraded as the Dalian Commodity Exchange was closed for national holidays in China.
Palm oil prices are affected by movements of other edible oils as they compete for a share in the global vegetable oils market.
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