JAKARTA: Malaysian palm oil futures rose on Thursday, extending gains to a second day, supported by recovery in Dalian vegetable oils and crude oil.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 33 ringgit, or 0.89%, to 3,759 ringgit ($803.38) per metric ton.
“The energy prices are also seen stabilised in the higher range now, supporting vegetable oils in bid for fresh discretionary demand from biofuel makers,” said Anilkumar Bagani, commodity research head at Mumbai based Sunvin Group.
The futures suffered a seven-session losing streak up to Tuesday this week.
Oil rebounded on Thursday as expectations of a tighter global crude supply outlook for the rest of 2023 overshadowed concerns over weaker economic growth and rising U.S. inventories.
Dalian’s most-active soyoil contract rose 0.46%, while its palm oil contract increased 0.62%. Soyoil prices on the Chicago Board of Trade were down 0.56%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Top palm oil buyer India imported 1.13 million metric tons of palm oil in August, a 3.9% increase from the previous month to the highest in nine months, a leading trade body said.
Meanwhile, European Union palm oil imports for 2023/24 stood at 634,515 tons by Sept 8, down from the 736,716 tons shipped a year earlier.
Exports of Malaysian palm oil products for Sept. 1-10 fell by 11.2% from a month earlier, cargo surveyor Intertek Testing Services said on Sunday, while independent inspection company AmSpec Agri Malaysia estimated a 20.4% drop.
Inventory of Malaysia’s palm oil rose 22.5% from the previous month to a seven-month high of 2.12 million tons at August end, as output increased and exports slowed, data from the Malaysian Palm Oil Board showed on Monday.
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