KUALA LUMPUR: Malaysian palm oil futures rose for a third straight session on Thursday, tracking rival Dalian oils, although weaker crude oil prices capped the gains.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained RM28, or 0.62 per cent, to RM4,573 (US$1,085.71) a metric ton in early trade.

Dalian’s most-active soyoil contract rose 2.49 per cent, while its palm oil contract climbed 3.74 per cent. Soyoil prices on the Chicago Board of Trade were down 0.31 per cent.

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

Trading resumed in Chinese markets after the National Day holiday from Oct 1 to 8.

Oil prices fell in early trade after Israel and Hamas agreed to the first phase of a plan to end the war in Gaza, weighing on oil’s war risk premium and pushing investors to sell.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

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

Asian stock markets resumed their ascent as investors doubled down on all things AI-related, while gold held atop US$4,000 and the dollar retained its recent hefty gains.

Source: New Straits Times