Malaysian palm oil futures bounce back

Malaysian palm oil futures have recovered from a ten month low, following a stronger performance from soy oil on the Chicago Board of Trade and China’s Dalian Commodity Exchange, according to The Star Online.

Shifts and changes in the soy oil market usually have repercussions on palm oil, as both vegetable oils compete for a share of the global edible oils market.

One trader told The Star Online that palm oil prices were up because "soy oil is quite firm today".

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 1 percent to 2,456 ringgit (€515) a tonne at the close of trade on 15 June, its biggest daily gain for a month.

A day earlier, the palm oil market had hit a low of 2,425 ringgit (€508), its weakest since 8 August 2016.

Crude oil prices can also impact on the palm oil market, with the vegetable oil used as a feedstock in biodiesel production. According to Reuters, crude oil prices fell by 1% on 15 June.