Malaysian palm oil futures rose on Tuesday, tracking stronger rival vegetable oils, with the benchmark contract recouping some of the losses from the previous three sessions.
The contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange climbed 5.18% to 3,835 ringgit ($860.83) per tonne by midday break.
Palm oil rebounded due to “spillover strength from external markets”, a trader in Kuala Lumpur said.
Dalian’s most-active soyoil contract DBYv1 rose 3.29%, while its palm oil contract DCPv1 gained 4.09%. Soyoil prices on the Chicago Board of Trade BOc2 were traded 1.97% higher.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Crude oil prices rose on Tuesday for a second day on increasing concerns about tightening European supply after Russia, a key oil and natural gas supplier to the region, cut gas supply through a major pipeline. O/R
Stronger crude oil prices make palm oil more attractive as a feedstock for biodiesel.
Meanwhile, Indonesia has issued palm oil export permits for a combined 3.84 million tonnes through its so-called Domestic Market Obligation scheme as well as its programme to accelerate export as of Monday, Trade Ministry advisor Oke Nurwan said.
