Palm oil snaps two-day losing streak

KUALA LUMPUR, July 16 (Reuters): Malaysian palm oil futures rose on Tuesday to snap a two-day decline, buoyed by stronger rival Dalian and Chicago contracts and higher export estimates.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed 1.34 per cent higher at 3,926 ringgit ($839.97) a metric ton.

The contract was seen trading sharply higher following a recovery in Chicago soyoil futures and strong Malaysian palm oil exports for July, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

The market is expected to test the 4,000 ringgit mark again, a Kuala Lumpur-based trader said.

Dalian's most-active soyoil contract DBYcv1 ticked up 0.05 per cent, while its palm oil contract gained 1.45 per cent. Soyoil prices on the Chicago Board of Trade were up 0.94 per cent.

Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.

Exports of Malaysian palm oil products for July 1-15 rose between 65.9 per cent and 75.6 per cent from a month earlier, according to cargo surveyors Intertek Testing Services and AmSpec Agri.