Malaysian palm oil futures firmed for a third straight session on Thursday, tracking higher crude and soybean oil prices, as traders awaited data on April exports due later in the day.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange climbed 42 ringgit, or 2.07%, to 2,073 ringgit ($479.64) per tonne by 0251 GMT.
However, palm oil was down 0.1% for the week, on course for its third weekly loss.
The Malaysian bourse will be closed for Labour Day on Friday and will resume operations on Monday.
Oil prices rose on Thursday, building on big gains in the previous session on signs the U.S. crude glut is not growing as fast as expected and that gasoline demand battered by COVID-19 restrictions is starting to pick up.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil exports from Malaysia, the world’s second-largest palm producer, during its first month of a partial lockdown to contain the coronavirus tumbled 41.7% from a year earlier to 890,331 tonnes, its plantation industries and commodities minister said on Thursday.
FGV Holdings, the world’s largest crude palm oil producer, forecast a significant drop in 2020 output as coronavirus-driven restrictions disrupted work at its plantations and mills.
Dalian’s most-active soyoil contract gained 0.34%, while its palm oil contract jumped 1.23%. Soyoil prices on the Chicago Board of Trade were up 0.38%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil still targets a zone of 2,072-2,107 ringgit, as suggested by its wave pattern and a projection analysis, Reuters technical analyst Wang Tao said.