KUALA LUMPUR: Malaysian palm oil futures extended gains on Friday, setting them on course for a second consecutive weekly jump, as concerns over tightening global edible oil supplies lingered in the wake of Russia’s invasion of Ukraine.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 128 ringgit, or 2.04%, to 6,416 ringgit ($1,516.07) a tonne during early trade, its highest since March 14.
For the week, palm is up 8.4% so far.
Italian confectionary giant Ferrero will stop sourcing palm oil from Sime Darby Plantation after the US customs service found the Malaysian planter used forced labour, in a reputational blow for the palm producer and for Malaysia.
Argentinian truckers agreed on Thursday night to call off a strike that paralysed soy and grains transport in the country since Monday, the transport ministry said.
Dalian’s most-active soyoil contract rose 0.6%, while its palm oil contract gained 1.6%. Soyoil prices on the Chicago Board of Trade were up 1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm rises to one-month high as Argentina strike raises supply worries
Oil prices settled higher on Thursday as investors covered short positions ahead of the long weekend and on news that the European Union might phase in a ban on Russian oil imports.
Stronger crude makes palm a more attractive option for biodiesel feedstock.