Palm oil prices climb about 2% in line with soyoil, crude

KUALA LUMPUR: Malaysian palm oil futures rose nearly 2 per cent on Tuesday along with rival oils and crude oil futures, despite concerns that the coronavirus pandemic will cut demand.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 43 ringgit, or 1.87 per cent, to 2,292 ringgit ($527.50) per tonne by 0241 GMT.

FUNDAMENTALS

Oil rose by more than $1 on Tuesday amid hopes that the world's biggest producers of crude will agree to cut production, even though analysts cautioned it may do little to boost demand. Stronger crude oil futures make palm a more appealing option for biodiesel feedstock.

Dalian's most-active soyoil contract gained 1.34 per cent, while its palm oil contract rose 1.45 per cent. Soyoil prices on the Chicago Board of Trade were also trading up 1.01 per cent.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Malaysia's palm oil exports during April 1-5 rose 10.6 per cent from a month earlier, cargo surveyor Intertek Testing Services (ITS) said on Monday.