Mumbai, 23 April (CommoditiesControl): Malaysian palm oil futures settled higher for s second consecutive session on Tuesday amid hot weather in key producer Malaysia, with strong export data and firmer rival oil prices lending support.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed up 25 ringgit or 0.63%, at 3,969 ringgit ($830.68) a metric ton.
Bad weather in Malaysia has contributed to higher prices, a trader said. According to him, "good" palm oil exports lifted sentiment.
Malaysia's meterological agency issued Level 1 hot weather alerts in over 10 areas previous day. Hot weather negatively affects palm yields.
Palm oil exports from top producer Indonesia are expected to recover in April, after shipments in March and February fell below the monthly average over the past year, as per the trade ministry.
Dalian's most-active soyoil contract climbed 2.09%, while its palm oil contract increased 1.06%. CBOT soyoil futures were up by 0.33%.
Palm oil usually takes directions from the price movements in related oils as they compete for a share in the global vegetable oils market.
Crude oil prices rallied after stronger economic data out of Europe, as investors also weighed the potential fallout from any fresh U.S. sanctions on Iran's oil exports with tensions remaining high in the Middle East. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Malaysia maintained its export tax for crude palm oil at 8% for May and raised its reference price.
Indonesia’s palm oil planter Astra Agro Lestari allocated up to 700 billion rupiah ($43.1 million) this year to replant up to 5,000 hectares of its maturing plantation to maintain output.
(By Commoditiescontrol Bureau; +91-9820130172)
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