Palm gains nearly 2% due to stronger Chicago crude oil, soyoil and export data

Malaysian palm oil futures rose nearly 2% Thursday after two sessions of losses. Stronger Chicago soyoil and crude 'oil prices, along with robust export data, supported the'market.

The benchmark contract for palm oil delivery in June on the Bursa Derivatives exchange closed up 85 Ringgit or 1.89% at 4,581 Ringgit ($1,147.55).

Anilkumar Bagani, head of commodity research at Sunvin Group in Mumbai, said that crude palm oil futures traded sharply higher as a result of a resurgence in energy prices and gains in Chicago soyoil.

The strong palm oil outlook also helped. According to cargo surveyors, exports between March 1-25 rose by 38.4% to 50.6%.

Bagani added that the prospect of higher 'Indonesian Palm Oil Export?taxes for April also contributed to the gains.

He added that palm oil's discount against gas oil has also increased, making it more appealing as a feedstock for biofuels.

Dalian's palm oil contract grew by 0.59%, while the most active soyoil contract climbed 1.05%. Soyoil prices at the Chicago Board of Trade rose 0.7%.

As palm oil competes to gain a piece of the global vegetable oils market, it tracks the price movement of rival edible oils.

Crude oil was up more than 3% from its previous session, as fears of further supply disruptions were stoked by the 'prospects of a prolonged conflict? in the Middle East.

Palm oil is a more attractive feedstock for biodiesel due to the stronger crude oil futures.

The ringgit, the palm's trade currency, fell 0.76% in value against the dollar. This made the commodity more affordable for buyers who held foreign currencies. $1 = 3.9920 Ringgit (Reporting and editing by Sherry Jab-Phillips, Sonia Cheema).

(source: Reuters)