JAKARTA: Malaysian palm oil futures gained on Monday, with support from stronger rival soyoil in the Chicago market, and a jump in crude prices also lending support.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 22 ringgit, or 0.49percent, at 4,535 ringgit (USD1,113.98) a metric ton at the close.
“Support from stronger crude oil and Chicago soybean oil is expected to underpin market sentiment,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract fell 0.02percent, while its palm oil contract shed 0.76percent. Soyoil prices on the Chicago Board of Trade were up 1.42percent.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices surged more than 2percent on Monday after renewed military strikes between the United States and Iran reignited concerns over energy shipments through 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 0.02percent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
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