Palm oil closes at a four-month high in Dalian on crude oil strength

Malaysian palm futures rose for the second consecutive session on Tuesday, closing at the highest level they have reached in just over four months. Gains in the price of crude oil and 'rival edible oils' on the Dalian Exchange boosted the market.

At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up 24 Ringgit or?0.51% at 4,747 Ringgit ($1,160.64).

Dalian's palm oil contract grew 0.47%, while the most active?soyoil contract grew 0.14%. Prices for soyoil on the Chicago Board of Trade rose 0.3%.

As they compete to gain a piece of the global vegetable oil market, palm oil monitors price changes in 'rival edible oils.

The price of crude oil rose by more than 2 percent on Tuesday, reaching its highest level in over a month. This was after President Donald Trump demanded compensation from Tehran.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

Malaysian palm oil stocks increased to 2.63 million tons in July, a five-month high. This represents a 3.32% monthly increase, as production volumes grew faster than export demand.

AmSpec Agri Malaysia - an independent inspection company - reported that exports of palm oil products from Malaysia rose by 9.21% between August 1-10, while Intertek Testing Services reported a 2.6% increase.

(source: Reuters)