Palm extends gains, hits two-week high on stronger Dalian palm olein

Malaysian palm oil futures hit a two-week high on Monday, buoyed by a rise in Dalian palm olein prices. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange surged 50 ringgit, or 1.01%, to 4,979 ringgit ($1,231.21) a metric ton, marking the highest closing price since August 21. A trader in Kuala Lumpur credited the Dalian palm olein rally for providing strength to crude palm oil prices, keeping the market in positive territory.

Dalian's leading soyoil contract increased by 0.31%, while its palm oil contract climbed 1.39%. The Chicago Board of Trade is on a holiday. Palm oil mirrors the price movements of other edible oils, vying for a slice of the global vegetable oils market. Oil prices are near six-week highs as conflicts between the U.S. and Iran disrupt vessel traffic in the Strait of Hormuz and other regions, reducing crude oil flows.

The weakening ringgit, compared to the dollar, makes the commodity slightly cheaper for foreign buyers. Meanwhile, India's heavy demand for vegetable oils has caused congestion at major ports, causing vessel unloading delays of up to 10 days as shore tanks fill and refiners grapple with clearing incoming cargo.