KUALA LUMPUR: Malaysian palm oil futures rose on Thursday for a sixth session and their highest close in nearly two weeks, buoyed by concerns over wet weather and by a rally crude oil prices.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 59 ringgit, or 1.62%, to 3,701 ringgit ($798.49) a tonne after rising as much as 4.4% earlier in the session.
Palm oil prices are probably being driven by demand and discounts to soft oils, said Marcello Cultrera, director at commodities consultancy Apricus 8 in Kuala Lumpur.
Expectations of a drop in Southeast Asian palm oil production from November to February owing to potential La Nina weather disruption also supported the contract, he said.
Oil prices stabilised near three-week highs after the OPEC+ producer group agreed to further tighten global crude supply with a deal to cut production by about 2 million barrel per day, the largest reduction since 2020.
Palm ends higher for fifth day as broader markets advance
Stronger crude oil futures make palm a more attractive option as biodiesel feedstock.
Soyoil prices on the Chicago Board of Trade fell 1.6%. The Dalian exchange was closed for the week for holidays.
Palm oil is affected by price movements in related oils that compete in the global vegetable oils market.
Comments
Comments are closed.