Palm logs biggest monthly gain in 4 years

KUALA LUMPUR: Malaysian palm oil futures extended gains for a fourth straight session on Tuesday, driven by short covering and robust March export data, to post their biggest monthly gain in four years.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 57 ringgit, or 1.19%, to 4,829 ringgit ($1,193.52) a metric ton at the close. The contract rose 19.47% in March and logged its highest monthly gain since April 2022.

Gains were aided by short covering as the market revisited the prior session’s high, a Kuala Lumpur-based trader said.

Dalian’s most-active soyoil contract fell 0.12%, while its palm oil contract added 0.74%. Soyoil prices on the Chicago Board of Trade rose 0.29%.

Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.

Cargo surveyors estimated that exports of Malaysian palm oil products for March rose between 44.3% and 56.7% month-on-month.

Meanwhile, Brent oil futures headed for their largest monthly gain in volatile trading on Tuesday, as investors weighed the likelihood of U.S. President Donald Trump ending the Iran war against supply shocks from a prolonged closure of the Strait of Hormuz.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, weakened 0.5% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

On Monday, Indonesia’s President Prabowo Subianto during an official visit to Japan said that the Southeast Asian country will go ahead with its B50 palm oil-based biodiesel programme this year.