13.06.2019 (The Edge Markets MY) - KUALA LUMPUR/JAKARTA (June 13): Malaysian palm oil futures jumped more than 2% on Thursday, supported by overnight gains in U.S. soyoil on the Chicago Board of Trade (CBOT). 

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 2.1% at 2,009 ringgit (US$482.35) per tonne.

Although the contract reversed Wednesday's 1.9% fall, it is still on track to post a weekly loss, currently down 0.9% on weaker soyoil prices and concerns of slowing export demand.

Malaysian palm oil shipments dived more than 30% between June 1-10, versus the corresponding period last year.

"Overnight gains in soy added strength to boost palm oil's market sentiment," said a Kuala Lumpur-based futures trader.

Soybeans had gained for a fourth consecutive session, as forecasts of more rains in the U.S. Midwest threatened to stall planting.

Meanwhile, the launch of a road test for biodiesel with 30% palm content in the world's top producer Indonesia also helped sentiment, the trader added.

"If that exercise is effective, it will be good for the market. Anything that will absorb palm supply is good for the market."

Indonesia started testing of B30 fuel in cars on Thursday, as it gears up for its mandatory use in 2020.

In other related oils, the September soyoil contract on the Dalian Commodity Exchange rose 0.2% and the Dalian September palm oil contract was up slightly.

Palm oil prices are affected by movements in related edible oils, with which it competes for global market share.   

 Palm, soy and crude oil prices at 1050 GMT    

 Contract                     Month        Last        Change       Low        High      Volume

 MY PALM OIL            JUN9        1928            -23         1928        1980          40

 MY PALM OIL            JUL9         2005             39         1987        2014      2928

 MY PALM OIL           AUG9        2009             41          1983        2021     24494

 CBOT SOY OIL         JUL9         27.65          0.09          27.5        27.8       9529

 INDIA PALM OIL       JUN9         499.3           4.4         494.1      500.3         940

 INDIA SOYOIL          JUN9           755           4.45        750.1      755.3       4920

 NYMEX CRUDE        JUL9         52.62          1.48        50.92       53.11    295714

 Palm oil prices in Malaysian ringgit per tonne

 CBOT soy oil in U.S. cents per pound

 Dalian soy oil and RBD palm olein in Chinese yuan per tonne

 India soy oil in Indian rupee per 10 kg

 Crude in U.S. dollars per barrel

(US$1 = 4.1650 ringgit)

(US$1 = 69.5425 Indian rupees)

(US$1 = 6.9208 Chinese yuan renminbi)