KUALA LUMPUR: Malaysian palm oil futures extended gains for a fourth straight session on Wednesday, closing near a five-month high, on better exports, stronger crude oil, and lower July production outlook.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed up 62 ringgit, or 2.48%, to 2,564 ringgit a tonne ($601.88), its best closing level since Feb. 21.
A combination of positive factors, including lower July production outlook, higher equities and pent-up sentiment - sent the expiring September benchmark higher, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
Malaysia exports in July 1-15 fell 9-10% from the month before, cargo surveyors said. This was better than a 17%-18% monthly decline in July 1-10 shipments. Dalian's most-active soyaoil contract gained 1.61%, while its palm oil contract rose 3.19%. Soyaoil prices on the Chicago Board of Trade were up 0.69%.
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