JAKARTA, Oct 1 (Reuters) - Malaysian palm oil futures rose 2.3% on Thursday on bargain buying and overnight rally in soy prices on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was up 2.3% at 2,777 ringgit ($669.64) by midday.
“Prices were supported by bullish recovery in soy oil futures on the CBOT overnight and some bargain buying from key support levels helping palm oil to trade higher,” Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group said.
Soybean futures on the CBOT were up 0.8% at $10.31-3/4 a bushel, having firmed 3.1% on Wednesday when prices hit a Sept. 22 high of $10.34-3/4 a bushel.
CBOT’s soyoil contract, meanwhile, was last up 0.5%.
The rally in CBOT futures came in after a United States Department of Agriculture (USDA) report showed that stockpiles were lower than expected.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Separately, the U.S. Customs and Border Protection (CBP) banned Malaysian palm oil producer FGV Holdings Bhd’s products after a year-long investigation that the agency alleges showed abuse, deception, physical and sexual violence, intimidation and the keeping of identity documents.
However, this barely had any impact on prices, the trader said, as buyers can “import from other plantations”.
$1 = 4.1470 ringgit Reporting by Fathin Ungku; editing by Uttaresh.V