Malaysian palm oil futures rose more than 2% on Tuesday after a two-session slide, as bargain buying and robust exports supported the market.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 94 ringgit, or 2.15%, to close at 4,474 ringgit ($1,063.97) per metric ton. The contract fell 2.41% in the last two sessions. The market was closed on Monday for a holiday.

Crude palm oil futures traded higher on bargain-buying after last week’s sell-off, with strong exports seen so far also lifting market sentiment, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

Cargo surveyors estimated that exports of Malaysian palm oil products for August rose between 10.2% and 15.4% from a month earlier.

India’s palm oil imports surged in August to a 13-month high, as competitive pricing relative to soyoil prompted refiners to ramp up purchases ahead of the festive season, according to five dealers.

Dalian’s most-active soyoil contract (DBYcv1) rose 0.31%, while its palm oil contract added 1.03%. Soyoil prices on the Chicago Board of Trade were up 0.88%.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices rose as concerns about supply disruptions grew amid an escalation of the conflict between Russia and Ukraine.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, weakened 0.07% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Indonesia exported 13.64 million tons of crude and refined palm oil from January to July, up 10.95% year-on-year.
Source: Reuters