KUALA LUMPUR: Malaysian palm oil futures rose for the second consecutive session on Thursday, as stronger rival Dalian oils supported the market while weakness in crude oil and Chicago soyoil limited the gains.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 31 ringgit, or 0.76%, to 4,093 ringgit ($969.91) a metric ton at the close.
The bullish momentum in Chinese vegetable oils during Asian hours supported the market, said Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group.
However, a downward push in Chicago soyoil futures and a slide in energy prices capped the gains, he added.
Dalian’s most-active soyoil contract rose 0.15%, while its palm oil contract added 1.22%. Soyoil prices on the Chicago Board of Trade fell 0.05%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices fell after gaining 3% in the previous session as investors are wary higher U.S. tariffs may be reinstated, which could cause lower fuel demand, and as major producers are expected to announce an output hike.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.14% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Comments
Comments are closed for this article.