Palm oil gains as crude prices climb higher

According to Business Recorder, Malaysian palm oil futures advanced on Monday, helped by firmer crude and support from Chicago soyoil. The November contract on the Bursa Malaysia Derivatives Exchange climbed 62 ringgit, a 1.29% gain, to 4,876 ringgit ($1,198.03) per metric ton by midday. A Kuala Lumpur trader said firm crude and expected stronger biodiesel demand were underpinning prices.

Crude prices rose over 3% on Monday as fresh Houthi strikes on Saudi Arabia and Iranian attacks on Gulf shipping deepened supply anxieties. A key Saudi pipeline was shut, adding to the pressure, and higher crude makes palm a more appealing input for biodiesel.

Dalian's most-active soyoil contract lost 0.46%, and its palm oil counterpart fell 0.87%. Chicago soyoil gained 0.7%. A weaker ringgit, down 0.12% against the dollar, made the commodity cheaper for buyers using foreign currencies. Cargo surveyors put Malaysian palm product exports for September 1 to 10 between 11.7% and 17.5% lower compared with a month earlier.