KUALA LUMPUR: Malaysian palm oil futures ended higher on Tuesday, snapping a two-day losing streak and climbing as much as 3%, tracking sharp gains in rival soyabean oil, although concerns over rising September production lingered.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 66 ringgit, or 2.35%, at 2,870 ringgit ($689.08) a tonne, snapping two straight sessions of losses.
"Crude palm oil prices this morning were higher led by the strength in correlated CBOT and Dalian products on demand mainly from China for grains and oilseeds," said Marcello Cultrera, institutional sales manager and broker at Phillip Futures in Kuala Lumpur.
However, forecasts of September production in Malaysia rising between 4% to 7% from August and output in Indonesia jumping 15% to 16% is adding pressure to prices, Cultrera said.
Market participants are now waiting for supply and demand data from the Malaysian Palm Oil Board on Thursday. A Reuters survey forecast August stockpiles rising 5% to 1.79 million tonnes from July.
Palm oil imports into the European Union and Britain in the 2020/21 season stood at 1.17 million tonnes, up 6% from the previous season, official EU data showed on Monday.
Dalian's most-active soyaoil contract rose 2.07%, while its palm oil contract gained 1.98%. Soyaoil prices on the Chicago Board of Trade were up 1.61%. US markets were closed on Monday for a holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The ringgit, palm's currency of trade, fell 0.24% against the dollar, making the edible oil cheaper for holders of foreign currency.