Palm climbs over 1% on stronger rival oils, crude

Business Recorder reported that palm oil futures in Malaysia climbed more than 1% on Tuesday, extending gains for a second session. The benchmark November contract on the Bursa Malaysia Derivatives Exchange ended 77 ringgit higher, a gain of 1.57%, at 4,971 ringgit ($1,231.67) per metric ton. Stronger rival edible oils and crude prices outweighed a softer August export picture reported by cargo surveyors.

Exports of Malaysian palm products in August were estimated by cargo surveyors to have dropped 6.5% to 14.9% compared with the previous month. Soyoil futures in Chicago climbed 2.02%. In Dalian, the most active soyoil contract gained 0.94%, while the palm oil contract there added 0.55%. Anilkumar Bagani, commodity research head at Sunvin Group, said the market had looked past the weaker August exports and the absence of a significant output decline.

Oil prices rose after hostilities between the United States and Iran resumed in the Middle East, reviving supply worries. Higher crude makes palm oil a more attractive feedstock for biodiesel production. A trade ministry regulation showed Indonesia's September reference price for crude palm oil at $1,007.51 per ton. India's weather department said on Monday that August rain ran 16% below normal, pointing to a likely below-average September, a development that has raised concerns about crop yields.