Malaysian palm oil futures closed higher on Friday, helping them record their biggest monthly gain since December, on signs of an improvement in demand as more countries eased lockdowns.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 27 ringgit, or 1.19%, at 2,295 ringgit ($528.19) a tonne. For the month, palm gained 9.9% as forecast of a lower output in May and resumption of purchases by India, the world's largest edible oil consumer, boosted prices.
There has been some buying this month by some countries to replenish stockpiles, but it may slow in the next few months, a Kuala Lumpur-based trader said. Dalian's most-active soyaoil contract rose 1.99%, while its palm oil contract gained 0.26%. Soyaoil prices on the Chicago Board of Trade were up 0.26%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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