Palm oil prices rise on strength in rival oilseeds, crude oil

KUALA LUMPUR: Malaysian palm oil futures jumped on Tuesday, mirroring gains in rival oils, and as a bounce in global equities and crude oil prices supported prices.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 32 ringgit, or 1.4 per cent, to 2,321 ringgit ($524.76) per tonne during early trade.

FUNDAMENTALS

US crude oil futures climbed nearly 3 per cent as the Trump administration launched an effort to work with Saudi Arabia to stabilise oil prices. Weaker crude oil futures make palm a less appealing option for biodiesel feedstock.

Dalian's most-active soyoil contract gained 1.7 per cent and its palm oil contract jumped 3.1 per cent. Soyoil prices on the Chicago Board of Trade were trading up 0.27 per cent.

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 break a resistance at 2,320 ringgit per tonne and rise to 2,398 ringgit, Reuters technical analyst Wang Tao said.