KUALA LUMPUR: Malaysian palm oil futures extended gains for a second straight session on Monday, supported by surging export demand and higher palm olein prices.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 49 ringgit, or 1.09%, to 4,560 ringgit ($1,080.57) a metric ton at the close.
Crude palm oil rallied above 4,500 ringgit on the back of a recent surge in palm oil demand, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Cargo surveyors estimated that palm oil exports during August 1-15 rose between 16.5% and 21.3% from a month earlier.
“Palm prices today are also lifted by higher palm olein prices during Asian hours,” the trader said.
Dalian’s most-active soyoil contract rose 0.05%, while its palm oil contract climbed 1.89%. Soyoil prices on the Chicago Board of Trade were down 0.56%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices held steady as traders awaited clues from a meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy as they attempt to come to a peace deal to end Europe’s deadliest war in 80 years.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.24% against the dollar, making the commodity cheaper for buyers holding foreign currencies.