The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.25% at 2,028 ringgit ($492.59) per tonne at the close of trade in its third straight session of gains. Earlier in the session, it rose as much as 1.3% to 2,030 ringgit, its strongest levels since June 21.

KUALA LUMPUR: Malaysian palm oil futures climbed over 1% on Wednesday evening to their highest in more than a month, tracking gains in related edible oils.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.25% at 2,028 ringgit ($492.59) per tonne at the close of trade in its third straight session of gains.

Earlier in the session, it rose as much as 1.3% to 2,030 ringgit, its strongest levels since June 21.

“Palm futures prices rose higher taking cue from continuous gains in competing vegetable oils,” said a Kuala Lumpur-based trader.

U.S. soybeans rose on Tuesday on hopes China could buy U.S. supplies. Grain prices held steady on Wednesday as fears about widespread yield losses due to recent adverse U.S. weather conditions underpinned the market.

In other related oils, the September soyoil contract on the Dalian exchange rose 1% and the Dalian September palm oil contract gained 1.7%.

Palm oil prices are affected by movements in related oils that compete for a share of the global vegetable oils market. – Reuters

Source : The Star