Palm oil surges more than 2% on stronger rival oils


Palm oil surges more than 2% on stronger rival oils

Malaysian palm oil futures rose more than 2% onTuesday, boosted by strengthin rival oils.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 88 ringgit, or 2.05%, to 4,387 ringgit ($1,014.34) a metric ton at the close.

The contract has gained 3.08% for two consecutive sessions.

The gains seen in rival oilseeds overnight and in morningtrade supported palm prices, a Kuala Lumpur-based trader said.

Dalian's most-active soyoil contract added 1.02%, while its palm oil contract DCPcv1 gained 2.06%. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 1.65%.

Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.

The ringgit MYR=, palm's currency of trade, weakened 0.58%against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.

Oil prices steadied near $74 a barrel as U.S. Secretary of State Antony Blinken renewed efforts to push for a ceasefire in the Middle East and slowing demand growth in the world's top oil importer, China, continued to weigh.

Stronger crudeoil futures make palm a more attractive option for biodiesel feedstock.

Source: Reuters (Reporting by Ashley Tang; Editing by Subhranshu Sahu, Rashmi Aich and Sumana Nandy)

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