Jakarta: Palm oil in Malaysia rose for the fifth day after Indian trade data showed imports of the world’s most traded vegetable oil rose in April to a four-month high.
Palm oil for July delivery rose as much as 49 ringgit, or 2.1%, to 2,395 ringgit a metric tonne on the Malaysia Derivatives Exchange on 16 May and ended the morning session up 1.8% at 2,389 ringgit.
Palm oil futures have averaged 2,058 ringgit ($605 ) since the year started, 42% higher than the same period a year ago after 17 weeks of gains.
India, the world’s second-largest user of palm oil, imported 254,369 metric tonnes of the oil favoured for making solid cooking fats in April, 20% more than in March, the Solvent Extractors’ Association said.
Palm oil, conventionally used for cooking and to derive chemicals for making soaps and detergents, is also used as a fuel additive, squeezing supplies.
Malaysia and Indonesia control about 90% of global palm oil supply.
Malaysian exports gained in March and April, reversing a four-month decline, according to data from the Malaysian Palm Oil Board.
In April, palm oil stockpiles in Malaysia dropped 12% to the lowest since May 2004 to 1.18 million tonnes. Malaysia’s largest palm oil export market is China.
Indonesia has overtaken Malaysia as the world’s largest palm oil producer.