Mumbai, 3 April (Commoditiescontrol):
Prices of palm oil extended their gains for the third straight session on Wednesday, due to a shortage after a slowdown in production during Ramadan, topped with hot weather over the past weeks.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives (BMD)Exchange rose 84 ringgit, or 1.95%, to 4,396 ringgit ($926) a metric ton, by the midday break.
"The futures is strong due to the coming Eid holiday. The Ramadan month provides a slowdown in production plus hot weather over the past weeks has resulted in lower yield, so there is a shortage of palm oils in the market at the moment," a market analyst said.
The soyoil contract on the Dalian Commodity Exchange gained 0.79%, while its palm oil contract was up 2.48%. Soyoil prices on the Chicago Board of Trade were up 0.31%.
Palm oil usually takes directions from the price movements in related oils as they compete for a share of the global vegetable oils market.
India's palm oil imports hit a ten-month low in March to 481,000 tons, as the top vegetable oil buyer increased sunflower oil imports amid lower prices, as per the , traders.
Crude oil extended its rally on Wednesday as a larger-than-expected fall in U.S. crude inventories and escalating geopolitical tensions raised investor worries about tighter supplies. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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