Malaysian palm oil futures rose on Tuesday evening for a second straight session of gains, supported by a weaker ringgit and slight strength in CBOT soyaoil futures. Weakness in the ringgit typically boosts demand by making the tropical oil cheaper for holders of foreign currencies. The ringgit weakened by 0.15 percent to 3.9540 per dollar at the end of the trading day. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,432 ringgit ($615.07) a tonne at the close of trade.
Palm oil jumped nearly 3 percent to a one-month high in intraday trade on Monday, the first session of trade since the stunning election defeat of a coalition that ruled the country for six decades. It closed with a gain of 1.5 percent. Trading volume stood at 49,160 lots of 25 tonnes each on Tuesday evening. "The ringgit was still weak and a positive CBOT soyaoil also lent a helping hand," said a futures trader in Kuala Lumpur.
The market rose despite reports of weaker exports of Malaysian palm oil products on Tuesday, traders said. Exports for May 1-15 fell 14.9 percent from a month earlier, said inspection company AmSpec Agri Malaysia. Cargo surveyor Societe Generale de Surveillance, meanwhile, reported a 13.7 percent drop for the same period. Palm oil could retest resistance at 2,466 ringgit a tonne, a break above which could lead to a gain to the next resistance at 2,475 ringgit, said Reuters market analyst for commodities and energy technicals, Wang Tao.
In related oils, the Chicago July soyabean oil contract edged up by 0.1 percent while September soyabean oil on China's Dalian Commodity Exchange was down 0.7 percent. The Dalian September palm oil contract slipped by 0.2 percent. Palm oil is affected by movements in rival edible oils competing for a share in the global vegetable oils market.
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