Palm oil prices up on higher rival oils and crude, slowing exports weigh

KUALA LUMPUR: Malaysian palm oil futures climbed for the third day on Thursday, tracking higher oil, but gains were capped by a drop in exports due to the coronavirus-driven lockdowns.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 22 ringgit, or 0.98 per cent, to 2,261 ringgit ($518.22) per tonne during 0238 GMT.

FUNDAMENTALS

Malaysia's palm oil exports during April 1-15 fell between 3.6 per cent and 6 per cent, according to cargo surveyors on Wednesday.

Oil rose on Thursday, with US crude rebounding from near 20-year lows in the previous session on hopes that a big build-up in US inventories may mean producers have little option but to deepen output cuts.

Dalian's most-active soyoil contract gained 1.45 per cent, while its palm oil contract rose 0.34 per cent. Soyoil prices on the Chicago Board of Trade were also up 0.26 per cent.

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