Malaysian Palm Oil Futures Gain as Export Demand Rises

Palm oil prices rose for a second straight day on August 5 as strong export demand from key importing countries supported the market. The benchmark October contract on Bursa Malaysia gained 0.3% to 4,710 ringgit per ton (about $1,152/ton).

The main bullish factor remains expectations of robust exports, analysts say. India's edible oil imports in July reached their highest level in ten months as refiners boosted purchases of palm and soybean oil ahead of the country's festive season amid tightening domestic supplies.

Falling soybean oil and crude oil prices continue to weigh on market sentiment, however. Lower crude oil prices reduce the attractiveness of palm oil as a biodiesel feedstock, limiting its upside potential.