Palm oil extends gains for 2nd session but higher output estimates cap rise
29/04/2024 (XM), Kuala Lumpur - Malaysian palm oil futures rose for a second consecutive session on Monday, underpinned by strength in rival Dalian and Chicago oils, although estimates of higher output capped gains.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange closed up 25 ringgit, or 0.64%, to 3,921 ringgit ($822.53) a metric ton.
The contract opened up in line with rival oilseeds, a Kuala Lumpur-based trader said.
However, estimates from the Southern Peninsular Palm Oil Millers Association (SPPOMA) indicating an improvement in Malaysian production for the April 1-25 period capped prices, the trader said.
The SPPOMA data showed that palm oil output for the period was up 4.11% in the world's second-biggest producer.
Dalian's most-active soyoil contract DBYcv1 gained 0.95%, while its palm oil contract DCPcv1 added 1.39%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.44%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Cargo surveyors are expected to release Malaysian palm oil exports estimates for April on Tuesday.
Oil prices were down 1% on Monday, erasing gains from Friday as Israel-Hamas peace talks in Cairo eased fears of a wider conflict in the Middle East and U.S. inflation data further dimmed the prospects of interest rate cuts anytime soon. O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The Malaysian ringgit MYR=, palm's currency of trade, was unchanged against the dollar.
($1 = 4.7670 ringgit)
Reuters