SINGAPORE: Malaysian palm oil futures reversed losses and rose over 1% on Tuesday, as crude oil climbed higher for a sixth session and as rival oils came off earlier lows.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange closed 51 ringgit, or 1.2%, higher at 4,445 ringgit ($1,061.62) a tonne, after falling to 4,318 ringgit earlier in the session.
“Crude oil prices are up again and rivals on the Dalian came off their lows quite significantly,” a Kuala Lumpur-based trader told Reuters.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm reverses course to end lower on higher output, cheaper rivals
Dalian soybean and palm oil both edged 0.2% lower on Tuesday after falling nearly 2% earlier in the session.
Chicago Board of Trade soybean oil was down 0.6%.
Meanwhile, prices of crude oil continued to rise, making palm a more attractive feedstock for biodiesel.
Oil markets rose for a sixth day on Tuesday on fears over tight supply while surging prices of liquefied natural gas (LNG) and coal also lent support.
Source: Brecorder
