JAKARTA: Malaysian palm oil futures rose for a third straight session on Wednesday, extending a recovery from their biggest weekly drop since 1986, boosted by rising crude and some rival oils.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 228 ringgit, or 3.82%, at 6,195 ringgit ($1,467.31).
“The absence of sunflower oil exports from Ukraine and tightness in soybean crop in Brazil, Argentina and Paraguay is a major support for palm oil at the moment,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Dalian’s palm oil contract jumped 3.93%, while its most active soyoil contract was down 0.6%. Soyoil prices on the Chicago Board of Trade gained 1.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm prices were also underpinned by higher crude oil prices amid volatile trading on increasing concerns of global supply tightness from sanctions imposed on Russia, the world’s second-largest oil exporter, and on signs that exports from Kazakhstan may be disrupted.
Stronger crude makes palm a more attractive option for biodiesel feedstock.
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