KUALA LUMPUR: Malaysian palm oil futures jumped more than 2pc on Thursday, supported by overnight gains in US soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 2.1pc at 2,009 ringgit ($482.35) per tonne.
Although the contract reversed Wednesday's 1.9pc fall, it is still on track to post a weekly loss, currently down 0.9pc on weaker soyoil prices and concerns of slowing export demand.
Malaysian palm oil shipments dived more than 30pc between June 1-10 versus the corresponding period last year.
"Overnight gains in soy added strength to boost palm oil's market sentiment," said a Kuala Lumpur-based futures trader.
Soybeans had gained for a fourth consecutive session as forecasts of more rains in the US Midwest threatened to stall planting.
Meanwhile, the launch of a road test for biodiesel with 30pc palm content in the world's top producer Indonesia also helped sentiment, the trader added.
"If that exercise is effective, it will be good for the market. Anything that will absorb palm supply is good for the market."
Indonesia started testing of B30 fuel in cars on Thursday as it gears up for its mandatory use in 2020.
In other related oils, the September soyoil contract on the Dalian Commodity Exchange rose 0.2pc and the Dalian September palm oil contract was up slightly.
Palm oil prices are affected by movements in related edible oils, with which it competes for global market share.
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