JAKARTA: Malaysian palm oil futures climbed for a third straight session on Tuesday, settling at their highest in nearly four weeks, supported by gains in rival edible oils in Dalian and Chicago markets, firmer crude prices and declining stock estimates.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 39 ringgit, or 0.94percent, to 4,186 ringgit (USD1,061.63) a metric ton at closing.
“Bursa Malaysia CPO future opened higher, tracking firmer price spreads in competing oilseeds,” a Kuala Lumpur-based trader said, adding that gains in the energy complex amid ongoing Israeli and US strikes on Iran were also propping prices.
Dalian’s most-active soy oil contract gained 1.16percent, while its palm oil contract advanced 1.6percent. Soy oil on the Chicago Board of Trade rose 1.34percent. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Malaysia’s palm oil stocks are expected to fall for a second consecutive month in February, reaching a four-month low, as seasonal output declines outweighed slower exports, a Reuters survey showed on Tuesday. India’s palm oil imports rose 10.1percent in February to a six-month high, as its widening discount to rival oils prompted refiners to ramp up purchases and cut imports of sunflower oil, according to five dealers.
Exports of Malaysian palm oil products in February declined between 21.5percent and 25.5percent, according to data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
Brent crude oil futures hit their highest since July 2024 as widening US-Israeli conflict with Iran and threats to shipping via the Strait of Hormuz heightened fears of supply disruptions from the key Middle East region.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. Palm oil may test a support at 4,121 ringgit per metric ton, a break below which could trigger a fall into the 4,078-4,098 ringgit range, Reuters technical analyst Wang Tao said.
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