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Malaysian palm oil futures extended gains for a second consecutive session on Tuesday, supported by stronger soyoil prices on the Dalian exchange after China's government announced fresh stimulus measures.
The benchmark palm oil contract for August delivery on Bursa Malaysia Derivatives rose 0.72% to close at 3,910 ringgit ($910.36) per tonne.
David Ng, a trader at Kuala Lumpur-based Iceberg X Sdn Bhd, said crude palm oil futures climbed on the back of positive sentiment in Dalian's soyoil market, as well as overnight gains in Chicago soyoil.
"Dalian soyoil prices rose mainly on the back of the stimulus package announced by the Chinese government, which lifted market sentiment," he added.
Dalian's most-active soyoil contract gained 0.49%, while its palm oil contract rose 1.25%. By contrast, Chicago soyoil prices slipped 0.3%. Palm oil is influenced by movements in competing vegetable oils as they vie for market share in the global vegetable oils market.
The ringgit, palm oil's main currency of trade, weakened 0.19% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Oil prices held steady amid uncertainty over US-Iran negotiations and Russia-Ukraine peace talks, while fresh government data pointed to a cautious outlook for China's economy, the world's biggest crude oil importer.
Cargo surveyors estimated that exports of Malaysian palm oil products during 1-20 May rose between 1.6% and 5.3% compared with the same period last month.
A notice on the Malaysian Palm Oil Board's website showed that Malaysia lowered its reference price for crude palm oil for June to a level that places it within the 9.5% export duty bracket.
Source: Reuters