KUALA LUMPUR/JAKARTA (June 13): Malaysian palm oil futures jumped more than 2% on Thursday, supported by overnight gains in U.S. soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 2.1% at 2,009 ringgit (US$482.35) per tonne.
Although the contract reversed Wednesday's 1.9% fall, it is still on track to post a weekly loss, currently down 0.9% on weaker soyoil prices and concerns of slowing export demand.
Malaysian palm oil shipments dived more than 30% between June 1-10, versus the corresponding period last year.
"Overnight gains in soy added strength to boost palm oil's market sentiment," said a Kuala Lumpur-based futures trader.
Soybeans had gained for a fourth consecutive session, as forecasts of more rains in the U.S. Midwest threatened to stall planting.
Meanwhile, the launch of a road test for biodiesel with 30% palm content in the world's top producer Indonesia also helped sentiment, the trader added.
"If that exercise is effective, it will be good for the market. Anything that will absorb palm supply is good for the market."
Indonesia started testing of B30 fuel in cars on Thursday, as it gears up for its mandatory use in 2020.
In other related oils, the September soyoil contract on the Dalian Commodity Exchange rose 0.2% and the Dalian September palm oil contract was up slightly.
Palm oil prices are affected by movements in related edible oils, with which it competes for global market share.
Palm, soy and crude oil prices at 1050 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUN9 1928 -23 1928 1980 40
MY PALM OIL JUL9 2005 39 1987 2014 2928
MY PALM OIL AUG9 2009 41 1983 2021 24494
CBOT SOY OIL JUL9 27.65 0.09 27.5 27.8 9529
INDIA PALM OIL JUN9 499.3 4.4 494.1 500.3 940
INDIA SOYOIL JUN9 755 4.45 750.1 755.3 4920
NYMEX CRUDE JUL9 52.62 1.48 50.92 53.11 295714
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
(US$1 = 4.1650 ringgit)
(US$1 = 69.5425 Indian rupees)
(US$1 = 6.9208 Chinese yuan renminbi)