Palm oil futures hit 13-year high on global edible oil tightness

London (Quantum Commodity Intelligence) - Palm oil futures hit a 13-year high Thursday supported by tightness across the edible oil complex after the benchmark third-month Bursa Malaysia crude palm oil futures contract briefly reached 4,231 ringgit/mt ($1,026.44/mt).

The contract for July delivery was last done at 4,210 ringgit/mt at 13.12 London time while offers were sitting at 4,220 ringgit/mt.

The less traded nearby futures contract for May also traded at an all-time high Thursday of 4,731 ringgit/mt.

Chicago Board of Trade soybean and soybean oil futures have also hit 12 highs this week, with fundamentals tight in the world's largest producer while other key exporters Brazil and Argentina are also facing decreased outflows this year.

Vegetable oils such as palm oil, soybean oil and rapeseed oil are key feedstocks for the production of biodiesel, which is required to be blended into fossil diesel in Europe, the US and several markets in South America and Asia.

Moves in crude petroleum oil prices can also often move the market for vegetable oil prices due to this relationship although currently, fundamentals specific to the edible oil market are the main driver.