(Adds midday prices, trader comments)
SINGAPORE, June 19 (Reuters) - Malaysian palm oil futures hit their highest level in more than two months on Friday, riding on gains in crude oil prices as well as lower stocks in top importers India and China.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange jumped 2.2% to 2,420 ringgit ($566.08) a tonne by midday, its highest since March 31.
Oil prices gained after OPEC producers and allies promised to meet their supply cut commitments and two major oil traders said demand was recovering well.
That supported palm prices, a Kuala Lumpur-based trader said. Stronger crude prices make palm an attractive option for biodiesel feedstock.
But “absent” demand of biodiesel compared to pre-pandemic times capped the gains, another Kuala Lumpur based trader said.
Lower stocks in top importers India and China, as well as anticipation of lower-than-expected growth in Malaysia and Indonesia also propped up prices.
“Lower vegetable oil stock in India and China, combined with talks of lower than expected growth in Malaysia and Indonesia palm oil production has set crude palm oil futures to trade higher,” said Anilkumar Bagani, research head of Sunvin Group, Mumbai.
Elsewhere, Dalian’s most-active soyoil contract jumped 1.83% and its palm oil contract rose 0.6%, while soyoil prices on the Chicago Board of Trade shed 0.5%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
$1 = 4.2750 ringgit Reporting by Fathin Ungku; Editing by Amy Caren Daniel and Rashmi Aich