NEW DELHI: Malaysian palm oil futures edged higher on Tuesday after extending losses for a second session on Monday, as soyoil prices jumped in Chicago.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 0.84% to 3,735 ringgit ($790.39) a metric ton in early trade. Palm oil futures dropped 6.06% on a monthly basis in September after posting two consecutive monthly gains.
“Palm oil is higher just as Chicago soyoil prices have inched up. But we may not see any major big, upward movement in prices due to weak demand,” said a New Delhi-based trader.
Buyers in top destination China have put off purchases due to holidays.