JAKARTA: Malaysian palm oil futures rose to their highest in more than three weeks on Monday, tracking gains in edible oils on the Dalian exchange.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.21%, to 4,779 ringgit ($1,171.32) a metric ton by the midday break.
The contract gained nearly 4% last week, a second consecutive gain.
“Bursa Malaysia crude palm oil futures opened higher, tracking gains in Dalian RBD palm olein futures,” a Kuala Lumpur-based trader said, adding that upside potential may remain limited by Malaysia’s elevated palm oil inventories.
Dalian’s most-active soyoil contract rose 0.62%, while its palm oil contract climbed 1.21%.
Soyoil prices on the Chicago Board of Trade were down 0.13%.
Palm oil tracks rival edible oils, as it competes for a share of the global vegetable oils market.
Malaysia’s agricultural exports were down 5.7% in September, amid declining shipments of palm oil and palm oil-based products, government data showed on Monday.
Palm oil mills in Indonesia’s West Kalimantan province reduced processing of fresh fruit bunches in September as lower river levels disrupted palm oil transportation.
Oil prices slipped on Monday after US President Donald Trump waived sanctions and tariffs on Russia that may lead to more Russian fuel exports.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. Palm oil FCPOc3 may climb into a range of 4,799 to 4,820 ringgit per metric ton, as it has broken a resistance at 4,766 ringgit, Reuters technical analyst Wang Tao said.