Malaysia on Tuesday alerted of more storms and heavy rainfall in the coming days. Meantime, Prime Minister Ismail Sabri Yaakob admitted to shortcomings in the government’s reaction to flooding that has led to more than a dozen deaths and the displacement of over 60,000 people.
The country mobilized its army and other security agencies behind torrential rain that started last Friday. Therefore, it pushed floods in eight states.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange advanced 1.0.8% to 4,496 ringgit ($1,069.71) by midday trade. It earned 3.73% over the past two days.
For the time being, supply concern and search rival oils movement backed the market, a trader in Kuala Lumpur stated, directing to floods in peninsular Malaysia.
Soy Oil Contract Rising
On the Dalian Commodity Exchange, the soy oil contract for May delivery increased 1.49%. Meanwhile, its palm oil contract accumulated 1.33%. On the Chicago Board of Trade, Soybean oil prices for May delivery were down 0.16%.
Price movements influence palm oil in corresponding oils as they compete for a share in the global vegetable oils market.
Oil prices climbed on Thursday for a third consecutive day. It was underpinned by a more weak dollar on optimism regarding global growth, even as governments from Australia to Europe step up curbs to restrict the spread of the Omicron COVID-19 variant.
Firmer crude oil futures generally make palm a more attractive option for biodiesel feedstock.
On the technical front, palm oil may test a resistance at 4,555 ringgit per tonne. This is a break past which could lead to a gain into 4,625-4,676 ringgit range.