Palm oil rises in second session on stronger competing oils

Malaysian palm oil futures rose for the?second session in a row on Thursday, mainly due to stronger edible oils.

By midday, the benchmark palm oil contract for August delivery on the Bursa Malaysia derivatives exchange had gained 30 ringgit or 0.66% to 4,568 Ringgit ($1,123.74).

A Kuala Lumpur-based trader said that the market was supported by positive oilseeds from rivals during Asian trading.

Dalian's palm oil contract, which is the most active contract, rose by?0.88%. Chicago Board of Trade soyoil prices rose 0.38%.

Palm oil tracks the price movement of rival edible oils as it competes to gain a share of 'global vegetable oils' market.

Oil prices rose after Tehran announced that the "critical energy chokepoint" - the Strait of Hormuz - was closed following the U.S.'s additional strikes against Iran, and President Donald Trump's threat of even more attacks in the event of a failed peace agreement.

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

The ringgit (the currency used to trade palms) firmed by 0.05% against dollars, making 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 decline, despite a drop in production, according to data released by the 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.

Technical analyst Wang Tao stated that palm?oil could test a resistance at 4,576 Ringgit per tonne, after it cleared a lower one at 4,538 Ringgit.

(source: Reuters)