KUALA LUMPUR: Malaysian palm oil futures edged higher on Thursday for a third straight session, buoyed by stronger rival Dalian and Chicago contracts and bargain buying.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed 6 ringgit, or 0.15% higher at 3,938 ringgit ($844.16) a metric ton.
The contract opened 24 ringgit lower then traded mostly sideways despite softer rival edible oils, a Kuala Lumpur-based trader said.
The emergence of bargain buyers had brought the contract up to a high of 3,941 ringgit before it settled 1 ringgit lower at the midday close, the trader added.
Dalian’s most-active soyoil contract rose 0.76%, while its palm oil contract gained 0.53%. Soyoil prices on the Chicago Board of Trade were up 0.57%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil snaps two-day losing streak on rivals’ strength, higher export estimates
Oil prices extended gains, buoyed by a bigger-than-expected decline last week in crude stockpiles in the United States, the world’s largest oil consumer.
Firmer crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.11% against the dollar, making the commodity less expensive for buyers holding foreign currencies.
Malaysia maintained its August export tax for crude palm oil at 8.0% and raised its reference price, a circular on the Malaysian Palm Oil Board website showed.
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