Malaysian palm oil futures snapped four days of losses on Tuesday, tracking gains in rival edible oils on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange. By Tuesday's close, the benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange had gained 2.25 percent to 2,768 ringgit ($649.99) a tonne, posting its biggest daily percentage gain since July 25.
Traded volumes stood at 43,839 lots of 25 tonnes. Palm had shed 2.6 percent in the last four sessions, after hitting a five-month high on August 24. The Malaysian bourse was closed on Thursday and Friday for public holidays. "This is all in line with external markets," said a futures trader based in Kuala Lumpur, referring to gains in soyaoil on the Dalian and the CBOT.
Exports of Malaysian palm oil products fell 0.1 percent in August to 1,259,240 tonnes, from 1,260,143 tonnes shipped during July, cargo surveyor Societe Generale de Surveillance said on Tuesday. Soyabean oil on the Chicago Board of Trade was up 0.3 percent, on track for a fourth straight session of gains. The most active soyabean oil contract on the Dalian Commodity Exchange was up 0.4 percent, on track for a third session of gains.
The September palm olein contract was up 1 percent. Palm prices are impacted by the movements of related edible oils as they compete for a share in the global vegetable oils market. US oil prices rose on Tuesday and gasoline fell as the gradual restart of refineries in the Gulf of Mexico that were shut by Hurricane Harvey raised demand for crude and eased fears of a fuel supply crunch. Chicago soyabean futures rose on Tuesday to the highest in almost a month as expectations of strong demand for US supplies supported prices.
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