Palm extends gains, hits two-week high on stronger Dalian palm olein

Malaysian palm oil futures rose to a two-week high on Monday, marking a second straight session of gains, according to Business Recorder. The November delivery contract on the Bursa Malaysia Derivatives Exchange gained 50 ringgit, or 1.01 per cent, to end the day at 4,979 ringgit ($1,231.21) per metric ton. That closing level was the highest since August 21.

Gains in the Dalian market were led by palm, with its palm oil contract up 1.39 per cent against a 0.31 per cent advance in soyoil. Chicago Board of Trade trading was shut for a public holiday. Palm tends to follow the price path of competing edible oils, since they vie for buyers across global vegetable oil demand.

Crude prices stayed near six-week highs after rival attacks by the U.S. and Iran struck vessels near the Strait of Hormuz. This made palm a more appealing biodiesel feedstock. The ringgit slipped 0.07 per cent against the dollar, which made the commodity marginally cheaper for buyers using foreign currencies. Separately, according to Reuters, aggressive Indian vegetable oil purchases have caused port congestion, with ship unloading held up by as many as 10 days.