Palm oil closes at its highest level since nearly 3 months, rising for the 6th consecutive session.

The Malaysian palm futures continued to rise for a sixth consecutive session on Wednesday. They closed at their highest level since over two and a half months as the strength of Dalian contracts outweighed profits taken by other oils.

The benchmark palm-oil contract for December delivery at the Bursa Derivatives Exchange in Malaysia rose 56 ringgit or 1.4% to 4,044 Ringgit ($979.89), closing at its highest level since July 5.

The contract's price has increased by 8.24% in the last six sessions.

A Kuala Lumpur based trader stated that the Malaysian palm futures continue to be on an upward trend as the Chinese stimulus announcement resulted in a continuous strength of Dalian oils.

The trader added, "We also see some profit-taking in long-term contracts of rival oil."

Dalian's palm oil contract gained 1.38% while the most active soyoil contract increased by 0.58%. Chicago Board of Trade soyoil fell by 0.23%.

As rival edible oils compete to gain a share of global vegetable oil market, palm oil monitors price changes in their competitors.

The palm ringgit's currency has strengthened by 0.55% against U.S. dollars, increasing the price of the commodity for buyers who hold foreign currencies.

Exports of Malaysian Palm Oil Products rose between 13% to 13.9% from Sept. 1-25 compared with a similar period last month, according to cargo surveyors.

The Indonesian palm oil trade association GAPKI reported that Indonesian palm oil exports dropped 36% in July compared to the same month a year ago, reaching 2.241 million tons.

The oil prices fell on Wednesday, as investors assessed whether China's new stimulus plans would be able boost the country's economy and stimulate fuel demand. China is the world's biggest crude importer.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

(source: Reuters)