Palm oil prices rise as rival oils, crude futures gain

KUALA LUMPUR: Malaysian palm oil futures rose on Wednesday, in line with gains in rival oils and crude oil futures, although gains were capped on caution ahead of April 1-15 export data announcement due later in the day.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 8 ringgit, or 0.31 per cent, to 2,257 ringgit ($522.09) per tonne during 0235 GMT.

Persisting concerns over rising inventories and lower exports following several countries' decision to shut businesses and borders to stem the coronavirus' spread have weighed on the market recently.

FUNDAMENTALS
Oil prices rose on Wednesday as investors looked for bargains after the previous session's slump and on hopes that consuming countries will look to fill their strategic reserves.

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

Dalian's most-active soyoil contract rose 0.11 per cent, while its palm oil contract gained 0.73 per cent. Soyoil prices on the Chicago Board of Trade were trading up 0.04 per cent.

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