Palm oil surges more than 2% on stronger rival oils
22/10/2024 (Business Recorder), Kuala Lumpur - Malaysian palm oil futures rose more than 2% on Tuesday, boosted by strength in rival oils.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 88 ringgit, or 2.05%, to 4,387 ringgit ($1,014.34) a metric ton at the close.
The contract has gained 3.08% for two consecutive sessions.
The gains seen in rival oilseeds overnight and in morning trade supported palm prices, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract added 1.02%, while its palm oil contract gained 2.06%. Soyoil prices on the Chicago Board of Trade climbed 1.65%.
Palm oil up on positive export estimates
Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.
The ringgit, palm’s currency of trade, weakened 0.58% against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.
Oil prices steadied near $74 a barrel as U.S. Secretary of State Antony Blinken renewed efforts to push for a ceasefire in the Middle East and slowing demand growth in the world’s top oil importer, China, continued to weigh.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.