KUALA LUMPUR: Malaysian palm oil futures extended gains for a fifth consecutive session on Thursday, as stronger palm olein and robust export demand supported the bullish sentiment in the market.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 34 ringgit, or 0.87%, to 3,933 ringgit ($927.59) a metric ton at the close.
Crude palm oil futures traded higher on Dalian palm olein’s strength and the recent export performance is seen as supporting market sentiment in the near term, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Dalian’s most-active soyoil contract fell 0.13%, while its palm oil contract added 1.46%. Soyoil prices on the Chicago Board of Trade were up 0.06%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Cargo surveyors estimate that exports of Malaysian palm oil products during May 1-25 rose between 7.3% and 11.6%, compared with the same period a month ago.
Oil prices rose nearly $1 a barrel after a US court blocked most of President Donald Trump’s tariffs, while the market was watching out for potential new US sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, weakened 0.47% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Indonesia has lowered its crude palm oil reference price to $856.38 per ton for June, a trade ministry regulation showed on Wednesday.
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