Palm oil climbs on stronger rival oils for the second consecutive session

The price of Malaysian palm oil futures rose for the second session in a row on Thursday as rival edible oils were stronger. The benchmark?oil contract for August delivery at the Bursa Derivatives Exchange rose 17 ringgit or 0.37% to 4,555 Ringgit ($1,120.82).

A Kuala Lumpur based trader said that the market was higher during Asian trading hours due to positive rival oilseeds. Dalian's palm oil contract rose by 1.17%, while the most active soyoil contract rose by 0.55%. Prices for soyoil on the Chicago Board of Trade fell by 0.09%.

Palm oil follows the price movements of other edible oils as it competes to gain a share in the global vegetable oils market. The oil prices dropped after earlier gains caused by the recent escalation in hostilities between Iran and the U.S., as traders assessed actual supply disruptions. Palm is less appealing as a biodiesel source due to weaker crude oil futures. The ringgit (palm's currency) gained 0.07% in value against the dollar, which made it slightly more expensive for buyers who hold foreign currencies. Malaysian palm oil stocks increased for the second consecutive month in May as exports continued to fall and production declined, according to data from industry regulator. Exports of Malaysian Palm Oil Products rose between 3.5% to 4.9% in the month from June 1-10, according to cargo surveyors.

(source: Reuters)