Palm oil gains as crude prices climb higher

JAKARTA: [Malaysian palm oil futures](https://palm oil) rose on Monday, supported by higher crude oil prices, with rival soy oil prices in the Chicago market also providing support.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 62 ringgit, or 1.29%, at 4,876 ringgit ($1,198.03) a metric ton by the midday break “Today’s FCPO is holding firm on the back of strong crude oil with anticipation of better demand for bio-diesel usage in the future,” a Kuala Lumpur-based trader said.

Oil prices rose more than 3% on Monday, after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline.

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

Dalian’s most-active soyoil contract dropped 0.46%, while its palm oil contract shed 0.87%.

Soyoil prices on the Chicago Board of Trade were up 0.7%.

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

The ringgit, palm’s currency of trade, weakened 0.12% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Cargo surveyors estimated that exports of Malaysian palm oil products for September 1 to 10 fell between 11.7% and 17.5% from a month earlier.

Palm oil may test support at 4,788 ringgit per metric ton, driven by a wave c, Reuters technical analyst Wang Tao said.