Palm up 1.5pc as crude oil extend gains
- The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed 1.5% higher at 2,361 ringgit ($551.25).
- Crude oil prices rose on Thursday as a sharp drop in oil stockpiles, making palm a more attractive option for biodiesel feedstock.
SINGAPORE: Malaysian palm oil futures rose for a second straight session on Thursday due to stronger crude prices and costlier rival oils, although concerns over a spike in coronavirus infections in the United States capped gains.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed 1.5% higher at 2,361 ringgit ($551.25).
Prices were supported by higher prices of crude oil and rival vegetable oils, a Kuala Lumpur based trader told Reuters.
Crude oil prices rose on Thursday as a sharp drop in oil stockpiles, making palm a more attractive option for biodiesel feedstock.
The biggest one-day spike in COVID-19 cases in the United States and reimposition of some lockdown measures in California, however, stoked worries of a halt in a recovery in fuel demand.
Elsewhere, palm's rival soyoil rallied to a near three-month high overnight on the Chicago Board of Trade (CBOT) on concerns that hot and dry weather could stress crops and reduce yield potential. It was last up 0.5%.
Meanwhile, Dalian's most-active soyoil contract rose 1.8%, while its palm oil contract was up 1.3%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Comments
Comments are closed for this article.