KUALA LUMPUR: Malaysian palm oil futures ended higher for a third session on Wednesday, logging a near 12-week high as supply disruptions in South America and Ukraine stoked concerns over global supply.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 167 ringgit, or 3.95%, to 4,400 ringgit ($929.05) a tonne, its highest price since Aug. 12.
Demonstrators protesting Brazil’s election results have disrupted fuel distribution, meat production, as well as the country’s ability to send grains and oilseeds to port, companies and authorities said on Tuesday.
Supply chain disruptions and weather risks in South America are likely to cause more volatility in the forward pricing, said Marcello Cultrera, director at commodities consultancy Apricus 8 Pte Ltd in Kuala Lumpur.
Dalian’s most-active soyoil contract rose 3.8 percent, while its palm oil contract gained 4.3 percent. Soyoil prices on the Chicago Board of Trade were up 1.4 percent.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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