Malaysian palm oil futures rose for a third straight session on Tuesday, tracking gains in rival oils on the Dalian Commodity Exchange and the Chicago Board of Trade.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange rose 41 ringgit, or 0.9%, to 4,4424 ringgit ($10,509.58) a tonne by midday.
“It’s tracking firm external markets,” a Kuala Lumpur based trader told Reuters.
U.S. soybean futures on the CBOT rose nearly 1% on Tuesday to rebound from a two-week low touched in the previous session after the U.S. Department of Agriculture (USDA) reported that the condition of crops unexpectedly deteriorated last week.
Its soybean oil contract BOc2 was last up 0.5%.
Meanwhile, Dalian’s most-active soyoil contract DBYcv1 rose 2.7% and its palm oil contract DCPcv1 jumped 3.2%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may rise into a range of 4,458-4,531 ringgit per tonne, as it has risen far above a key barrier at 4,260 ringgit, said Reuters technicals analyst Wang Tao.
Source: Reuters (Reporting by Fathin Ungku; Editing by Amy Caren Daniel and Ramakrishnan M.)