JAKARTA: Malaysian palm oil futures rose for a second session on Tuesday to its highest closing innearly three months, tracking gains in rival vegetable oils andsupported by a weaker ringgit.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 78 ringgit, or 1.92%, to 4,149 ringgit ($979.23) a metric ton at closing.
The market rallied on the back of stronger Dalian palm oil and Chicago soyoil, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract gained 0.63%, while its palm oil contract jumped 2.34%. Soyoil prices on the Chicago Board of Trade climbed 0.5%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Indonesia’s palm oil exports to the United States may fall by 15%-20% if U.S. President Donald Trump’s reciprocal tariffs are implemented, industry group GAPKI estimated.
The ringgit, palm’s currency of trade, weakened 0.17% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm drops for a second session on weak rivals, crude oil
Oil prices eased after rising almost 2% in the previous session, as investors assessed the latest developments on U.S. tariffs and a higher-than-expected OPEC+ output hike for August.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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