Palm oil edges up on higher Dalian soyoil

Malaysian palm oil futures rose marginally on Thursday on higher Dalian soyoil prices, with investors on the wait for upcoming supply and demand data, but weaker crude prices capped gains.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 2 ringgit, or 0.08%, to 2,409 ringgit ($564.83) a tonne by 0308 GMT.

Palm had risen 2% to close at a two-week high in the previous session.

The Malaysian Palm Oil Board and cargo surveyors are scheduled to release industry performance data on Friday.

Malaysia's palm oil inventories in June likely fell about 5% from May as a recovery in demand from key importers due to the easing of coronavirus-fuelled curbs lifted exports to a 10-month high, according to a Reuters poll.

FUNDAMENTALS

Oil prices drifted lower as concerns about renewed COVID-19 lockdowns in the United States outweighed signs of a recovery in U.S. gasoline demand. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract rose 0.62%, while its palm oil contract gained 0.87%. Soyoil prices on the Chicago Board of Trade fell 0.21%.

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

Palm oil may rise to 2,436 ringgit per tonne, Reuters technical analyst Wang Tao said.

MARKET NEWS

Asian stocks were expected to rise on Thursday, as hopes of a robust economic recovery offset concerns over flare-ups in the coronavirus pandemic, and as investors looked ahead to the earnings season.