Palm oil gains for second consecutive session as crude and rival edible oils firm up
Malaysian palm oil futures recovered from earlier losses and edged higher for the second consecutive session on Thursday. This was aided by higher crude 'oil prices, as well as firmer Chicago soyoil and Dalian 'palm olein.
The benchmark contract for palm oil delivery in October on the Bursa Derivatives exchange gained 15 ringgit or 0.32% to 4,679 Ringgit ($1,144.29).
A Kuala Lumpur based trader reported that Dalian 'palm olein' and Chicago soyoil both traded higher in the Asian afternoon session.
The benchmark October contract was traded in a?weak manner? throughout the morning session. Trading activity remained below average, as market participants stayed cautious," said the trader.
Dalian's most active palm oil contract grew 0.47%, while its soyoil contract fell 0.18%. Chicago Board of Trade soyoil prices were up 0.4%.
Palm oil follows the price movement of competing edible oils as it competes to gain a share of global vegetable oils market.
Oil prices increased for the second consecutive day, as new attacks between Iran and the United States disrupted oil flow through major shipping routes.
Palm oil is more appealing as a biodiesel feedstock because of the stronger?crude?futures.
The palm ringgit (the currency of trade) remained unchanged in relation to the U.S. Dollar.
An energy ministry document revealed that Indonesia has increased its palm oil-based Biodiesel allocation to 16.75 million Kilolitres for 2026 in order to meet the additional demand of 'the country's mandate on B50 biodiesel launched earlier this month.
(source: Reuters)
