KUALA LUMPUR, Dec 23 (Reuters): Malaysian palm oil futures closed more than 1% higher on Tuesday, for a second consecutive session, as stronger soyoil prices lifted the market.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 51 ringgit, or 1.28%, to 4,036 ringgit ($994.09) a metric ton at the close.
Crude palm oil traded higher supported by strength in the soybean oil market, mainly on firm Chinese demand, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Dalian's most-active soyoil contract rose 0.49%, while its palm oil contract added 1.85%. Soyoil prices on the Chicago Board of Trade were down 0.33%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices were little changed as potential sales of Venezuelan crude seized by the United States were countered by heightened supply disruption fears after Ukrainian attacks on Russian vessels and piers.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Indonesia allocated 15.646 million kilolitres of palm-based biodiesel for its blending mandate in 2026, Ernest Gunawan, the secretary general of the biodiesel producers group APROBI said.
Cargo surveyors Intertek Testing Services estimated that exports of Malaysian palm oil products for December 1-20 rose 2.4% from a month earlier, while AmSpec Agri Malaysia's export estimate showed a decline of 0.87%.
The ringgit, palm's currency of trade, strengthened 0.39% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
