KUALA LUMPUR: Malaysian palm oil futures extended gains for a third straight session on Tuesday, supported by stronger rival edible oils and crude oil prices.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained RM21, or 0.42 per cent, to RM4,999 (US$1,235.85) a metric ton in early trade.

Dalian’s most-active soyoil contract rose 0.42 per cent, while its palm oil contract added 1.67 per cent. Soyoil prices on the Chicago Board of Trade were up 0.59 per cent.

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

Oil prices extended gains as risks of a prolonged conflict in the Middle East grew after Iran threatened to retaliate against any new US attacks on its assets, heightening worries over supply disruption.

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

The ringgit, palm’s currency of trade, weakened 0.05 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

India’s aggressive vegetable-oil buying has led to congestion at major ports, delaying vessel unloading by as much as 10 days as shore tanks fill and refiners struggle to clear incoming cargo, industry officials told Reuters.

Palm oil may revisit its August 21 high of RM5,031 per metric ton, as the uptrend from RM4,614 could have resumed, Reuters technical analyst Wang Tao said.

The yen surged on Tuesday, while Asian markets struggled for direction as a mixed batch of regional economic data and fresh Iranian threats in the Persian Gulf drove oil prices and bond yields higher.

Source : NST