Palm extends gains on firmer rival Dalian

Malaysian palm oil futures surged for the second consecutive day on Thursday, buoyed by gains in other leading vegetable oil markets, though subdued crude oil prices, ample inventories and profit-taking tempered the ascent. The key January palm oil contract on Bursa Malaysia Derivatives Exchange climbed 29 ringgit, or 0.66%, to 4,439 ringgit ($1,087.99) per metric ton at the day's close.

The market's upward momentum followed bullish rallies in rival Dalian during Asian trading hours, as well as overnight gains in soyoil futures in Chicago, according to Anilkumar Bagani, head of research at Sunvin Group, a Mumbai-based vegetable oil broker. However, the rally was tempered by lower energy prices and substantial Malaysian stockpiles, leading some traders to lock in profits after prices hit a crucial resistance level.

Dalian's most-traded soyoil contract surged 0.46%, while its palm oil contract jumped 2.55%. Soyoil prices on the Chicago Board of Trade slipped 0.44%. Oil prices dipped slightly after recovering from earlier losses, as ongoing geopolitical tensions in the Middle East and Russia counteracted gains from rising crude output. The Malaysian ringgit slipped 0.15% against the dollar, making palm oil somewhat more affordable for overseas purchasers.