Credit: REUTERS/LIM HUEY TENGBy Mei Mei Chu
KUALA LUMPUR, April 22 (Reuters) - Malaysian palm oil futures jumped more than 2% for a third consecutive session on Thursday, hitting a one-month high, on anticipation of tight production and as rival soyoil gained.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange closed up 99 ringgit, or 2.54%, at 3,993 ringgit ($971.41) a tonne, its highest since March 23.
"As announced by World Bank in its report, global edible oils are expected to keep a strong momentum in 2021 due to supply shortfalls and stronger-than-expected consumption patterns," a Singapore-based trader said.
Global commodity prices are expected to stay firm around current levels in 2021 after recovering in the first quarter buoyed by strong economic growth, the World Bank said on Tuesday.
The Southern Peninsula Palm Oil Millers' Association in Malaysia estimated production during April 1-20 will be unchanged from the previous month, according to traders, defeating hopes of a recovery in supply.
Dalian's most-active soyoil contract DBYcv1 rose 1.7% and its palm oil contract DCPcv1 gained 2.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 2.4%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
"The spread between soybean oil and palm oil is getting wider, will encourage buyers to buy more palm oil for nearby shipment," the trader said.
Soybean oil was trading $311 above palm oil, making palm the more attractive edible oil option.
($1 = 4.1105 ringgit)
(Reporting by Mei Mei Chu; Editing by Shailesh Kuber, Krishna Chandra Eluri and Amy Caren Daniel)
((Meifong.chu@thomsonreuters.com))
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