Palm oil prices rise on the back of Middle East turmoil

In Malaysia, Reuters reports that following the heightened conflict between Hamas and Israel on Monday, oil prices rose 3% which have given a boost to palm oil prices that were falling due to excess supplies. With higher oil prices due to potential increased instability in the Middle East, demand could pick up for biodiesel which would further support palm oil prices. Gains were capped earlier this week in spite of the fighting due to Chinese holidays last week which weakened Chinese vegetable oil futures prices.