Palm oil rises for third day, tracking crude oil and Dalian

Malaysian palm oil futures extended gains to a third straight session on Wednesday, according to Business Recorder, helped by firmer crude prices and rises in rival edible oils on Dalian. The December contract on the Bursa Malaysia Derivatives Exchange added 51 ringgit, or 1.09%, to 4,733 ringgit ($1,160.05) per metric ton by the midday break.

A Kuala Lumpur-based trader said the contract was tracking Dalian and crude oil on the day. Oil prices rose after two vessels were hit in the Strait of Hormuz, and Iranian officials told Reuters they were using new methods to target ships. The report said Tehran wanted to keep oil prices elevated and affect the US midterm elections, while stronger crude futures make palm more appealing as a biodiesel feedstock.

Soyoil on Dalian's most-active contract climbed 0.89%, while palm on the same exchange advanced 1.07%, and soyoil on the Chicago Board of Trade added 0.18%. On the supply side, Malaysian stockpiles in September reached 3.51 million metric tons after output hit a record that beat market forecasts. Cargo surveyors put exports of Malaysian palm products for October 1-10 up between 33.5% and 37.7% compared with a month before.