JAKARTA: Malaysian palm oil futures closed higher on Thursday, snapping three consecutive sessions of losses, supported by the strength from soyoil at Dalian market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 14 ringgit, or 0.31 percent, to 4,470 ringgit (USD1,058.24) a metric ton at the close.
“When Dalian recovered from morning low, palm futures stopped dropping and started to rise on the back of soyoil,” a trader said. Dalian’s most-active soyoil contract lost 0.7 percent, while its palm oil contract shed 1percent. Soyoil prices on the Chicago Board of Trade were up 1.34percent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Indonesia’s biodiesel consumption from January to September stood at 10.57 million kilolitres, energy minister Bahlil Lahadalia said on Wednesday.
That’s up nearly 10percent from 9.61 million kilolitres a year earlier. Oil prices rose by more than 4percent on Thursday, extending gains from the previous session, after the US imposed sanctions on major Russian suppliers Rosneft and Lukoil over the Ukraine war.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, strengthened 0.02 percent against the dollar. A stronger ringgit makes the commodity more expensive for buyers holding foreign currencies.
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