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 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 gained 0.95%, while its palm oil contract added 1.39%. Soyoil prices on the Chicago Board of Trade were up 0.44%.
Palm oil rebounds from two-day fall but still down weekly
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.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The Malaysian ringgit, palm’s currency of trade, was unchanged against the dollar.
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