Palm oil closes higher on weather woes at oilseeds plantations

Malaysian palm oil futures rose for a second session to close at a more-than-one-week high on Tuesday, tracking sustained gains in soyoil on poor weather in Brazil and Russia, while key palm producer Indonesia’s adverse weather conditions also supported palm prices. The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange closed up 68ringgit, or 1.76%, to 3,930 ringgit ($829.81) a metric ton, the highest close since April 25. After the massive sell-off of Malaysian palm oil in April, the market is re-pricing itself with weather vagaries in Brazil and Indonesia impacting edible oils, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. Worries over soybeans shortage amid potentially crop-damaging weather in Brazil and Russia are pushing soyoil prices higher. Indonesia’s meteorological agency warned of potential extreme weather events occurring in the country from May 7-13 such as tornadoes and ...