Malaysian palm oil futures rose for a third straight session on Thursday, as soy oil climbed on concerns over tight soybean harvest and market participants resumed bargain-hunting.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange had risen 3.89% to 3,975 ringgit ($892.66) per tonne by the midday break, edging towards its best day in nearly two weeks.
The contract has fallen sharply over the past two months as rival Indonesia resumed exports. So far in July, it has lost 19% after posting a 22% decline in June.
Palm oil was helped by the strength in rival vegetable oils on Thursday, a trader in Kuala Lumpur said, while palm oil “remains very cheap” compared to soyoil.
Dalian’s most-active soyoil contract DBYv1 rose 4.60%, while its palm oil contract DCPv1 gained 5.72% and was headed for its biggest daily gain since March. Soyoil prices on the Chicago Board of Trade BOcv1 rose 2.29%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Chicago soybean futures rose for a fifth consecutive session on Thursday to their highest in more than two weeks, as hot and dry weather conditions expected in parts of the U.S. Midwest threaten to reduce yields. /
Meanwhile, crude palm oil exports from top producer Indonesia are picking up pace, reaching 100,000 tonnes to 140,000 tonnes per day after the government waived its export levy to ease a supply glut, a senior Finance Ministry official said on Wednesday.
Palm oil may test a resistance of 4,085 ringgit per tonne, a break above which could lead to a gain to 4,269 ringgit, Reuters technical analyst Wang Tao said.
