KUALA LUMPUR: Malaysian palm oil futures extended gains for the fourth straight session to touch an over three-month high on Thursday evening, tracking gains related to edible oils and crude oil, while short covering activity also provided support
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange rose 1.5% to 2,135 ringgit ($510.40) per tonne at the close of trade.
It earlier rose as much as 1.9% to 2,144 ringgit, its highest since April 25.
“Gains from earlier in the day were led by crude oil price gains and strength in Dalian,” said a Kuala Lumpur based trader, referring to soyoil and palm olein traded on China’s Dalian Commodity Exchange, adding later in the day that short covering also boosted palm’s gains.
The September soyoil contract on the Dalian exchange rose 2.2% and the Dalian September palm oil contract gained 0.7%.
Meanwhile, oil jumped more than $1 a barrel on Thursday due to expectations that falling prices may lead to production cuts, coupled with a steadying of the yuan currency after a week of turmoil spurred by an escalation of U.S.-China trade tensions.
In other related oils, U.S. soyoil futures on the CBOT were last up 0.8% on Thursday.
U.S. soybean futures took a breather on Thursday, as the oilseed struggled to find support amid heightened fears about the impact of a protracted trade war between Washington and Beijing. Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market. – Reuters
Source : The Star