Palm jumps to over 2-week high on gains in related edible oils

KUALA LUMPUR: Malaysian palm oil futures jumped in early trade on Monday tracking strong gains in soyoil on the Chicago Board of Trade (CBOT) and related edible oils on China's Dalian Commodity Exchange. 
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 1.5 percent at 2,496 ringgit ($581.07) a tonne at the midday break, its strongest gain in over two weeks. 
It earlier rose to an intraday peak of 2,504 ringgit, its highest level since June 19. Traded volumes stood at 18,160 lots of 25 tonnes each. 
"The market is up on strong gains in soyoil," said a Kuala Lumpur-based futures trader, referring to palm's rival oilseed on the CBOT. 
Gains in soyoil and refined bleached and deodorized palm olein on China's Dalian exchange were also supportive of palm oil, he added. 
Palm oil prices are also impacted by movements in soyoil, as the compete for a share in the global edible oils market. Soybean oil on the CBOT rose 0.8 percent on Monday, after the US Department of Agriculture reported lower-than-expected estimates for plantings and soybean stocks. 
In other related oils, the September soybean oil on the Dalian Commodity Exchange was up as much as 1.4 percent, while the September palm olein contract rose 1.3 percent. 
Gains however are not likely to sustain as exports remain weak after the Ramadan and Eid-Al-Fitr festivities, said another trader. 
Consumption of palm oil for cooking purposes is higher during Ramadan, which sees Muslims break day-long fasts with communal feasting, and also for the Eid celebrations. 
Demand typically slows after Ramadan, as buyers stock up on palm oil supplies a month or two ahead of the festivities.