Kuala Lumpur - Arabstoday
Palm oil climbed for a second day to the highest level in more than a week after crude advanced, lifting the appeal of vegetable oils as a biofuel feedstock, and on gains in rival soybean oil. The contract for September delivery climbed 0.7 per cent to 3,077 ringgit (Dh3,774) per metric tonne on the Malaysia Derivatives Exchange, the highest level at close since June 29. Futures added 1.4 per cent last week, the first gain in six weeks. Palm oil is getting \"support from firmer crude oil and soybean oil last night,\" Chandran Sinnasamy, head of trading at LT International Futures (M) Sdn, said by phone from Kuala Lumpur. \"The market is correcting upwards, from the sharp fall in the last five weeks.\" Crude oil for August delivery Friday climbed 2.1 per cent to $98.67 (Dh362.42), the highest since June 14. Prices were 3.4 per cent higher last week. Article continues below Increased production Palm oil declined 11.7 per cent in the past five weeks through July 1 on concern that increased production may expand stockpiles in Malaysia, the second-largest grower. Inventories climbed 5.8 per cent to 2.03 million tonnes in June, while output gained 2.3 per cent to 1.78 million tonnes, a Bloomberg survey of three analysts and two plantation companies showed. The Malaysian Palm Oil Board will release output, inventory and export data for June on July 11.