Palm climbs for second straight session on stronger rival oils
- Dalian’s most-active soyoil contract rose 0.55%
KUALA LUMPUR: Malaysian palm oil futures settled higher for a second straight session on Thursday, as stronger rival edible oils supported the market. The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 17 ringgit, or 0.37%, to 4,555 ringgit ($1,120.82) a metric ton at close.
The market traded higher on support from positive rival oilseeds during Asian trading hours, said a Kuala Lumpur-based trader.
Dalian’s most-active soyoil contract rose 0.55%, while its palm oil contract climbed 1.17%. Soyoil prices on the Chicago Board of Trade were down 0.09%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices fell, following earlier gains triggered by the recent escalation of hostilities between the U.S. and Iran, as traders assessed the actual impact on supply disruptions.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, firmed 0.07% against the dollar, making the commodity slightly expensive for buyers holding foreign currencies.
Malaysia’s palm oil stocks rose for a second straight month in May, as a continued drop in exports outpaced a decline in output, data from the industry regulator showed.
Cargo surveyors estimated that exports of Malaysian palm oil products for June 1 to 10 rose between 3.5% and 4.9% from a month earlier.