JAKARTA: Malaysian palm oil futures closed higher for a third straight session on Tuesday, tracking gains in rival oils, while the market is waiting for a major industry conference due to be held in Kuala Lumpur next week.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 61 ringgit, or 1.58%, to 3,924 ringgit ($824.37) per metric ton on the closing.

“Palm maintains good resilience even at a narrow premium over soyoil. With the upcoming Price Outlook Conference and Exhibition (POC) in Kuala Lumpur next week, traders are hesitant to take short positions in palm markets,” said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading firm.

The soyoil contract on the Dalian Commodity Exchange was up 0.94%, while its palm oil contract rose 1.04%. Meanwhile, soyoil prices on the Chicago Board of Trade increased 0.67%.

Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.

Palm ends lower on profit taking, lack of fresh buying

Indonesia’s palm oil output this year is expected to rise by 5% year-on-year to 57.6 million metric tons as more newly matured crops come into fruition, the Indonesia Palm Oil Association (GAPKI) said on Tuesday.

Exports of Malaysian palm oil products for Feb. 1-25 fell 14.3% to 863,108 tons from 1,006,930 tons shipped during the same period in January, according to independent inspection company AmSpec Agri.

According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products in the same period also fell to 951,409 tons from 1,064,778 tons shipped from Jan. 1-25.

Meanwhile, Indonesia sees its biodiesel consumption in 2024 between 12.5 million kilolitres and 13 million kilolitres, an energy ministry official said on Tuesday.

It also plans to double its palm oil replanting subsidy, chief economic minister Airlangga Hartarto said in a statement on Tuesday, to boost farmer participation in the programme.

Oil prices ticked up in early Asian trading on Monday, extending gains for the third straight session, as shipping disruptions spurred supply worries.

Palm oil may climb to 3,914 ringgit per ton, as it managed to stabilise above a rising trendline, according to Reuters’ technical analyst Wang Tao.