KUALA LUMPUR (June 13): Malaysian palm oil futures jumped nearly 2% during the first half of trade on Thursday, supported by overnight gains in US soyoil on the Chicago Board of Trade (CBOT).  

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was last up 1.4% at RM1,995 (US$479.68) per tonne at the midday break.

It earlier rose as much as 1.7% to RM2,001, but is down 1.6% so far on the week, in line for a second straight weekly decline.

Palm oil had been dragged down this week by weaker soyoil prices and concerns of slowing export demand.

Malaysian palm oil shipments dived more than 30% during June 1-10 versus the corresponding period last year.

"Overnight gains in soy added strength to boost palm oil's market sentiment," said a Kuala Lumpur-based futures trader.

Soybeans had gained for a fourth consecutive session as forecasts of more rains in the US Midwest threatened to stall planting.

The Chicago July soybean oil contract edged up 0.2%, after closing 1.3% firmer in the previous session.

In other related oils, the September soyoil contract on the Dalian Commodity Exchange rose 0.3% and the Dalian September palm oil contract was also up 0.2%.

Palm oil prices are affected by movements in related edible oils, with which it competes for global market share.    

Palm, soy and crude oil prices at 0534 GMT

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel

(US$1 = RM4.1590)
(US$1 = 69.3550 Indian rupees)
(US$1 = 6.9197 Chinese yuan)