KUALA LUMPUR: Malaysian palm oil futures edged higher on Monday, supported by the previous session's gains in Chicago soyoil prices, although a strong ringgit limited the upside.
The ringgit, palm oil's currency of trade, gained nearly 1 percent against the dollar last week and was last trading around a four-month high.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was up 0.2 percent at 2,175 ringgit ($531.14) a tonne at noon, heading for a second straight session of gains.
Trading volumes stood at 9,349 lots of 25 tonnes each at the midday break. <1FCPO-TOT>
"The market is supported by continued gains in rival oilseed soyoil," said a Kuala Lumpur-based futures trader, adding that the ringgit's strength capped the vegetable oil's gains.
Palm oil prices are impacted by changes in those of soyoil, as they compete for a share in the global vegetable oil market.
The Chicago March soybean oil contract rose 0.8 percent on Friday, and was last up 0.1 percent on Monday.
Soyoil prices rose on Friday in line with gains in soybeans,which advanced on technical buying and concerns about crop prospects in South America due to adverse weather in Brazil and Argentina.
In other related oils, the May soybean oil contract on the Dalian Commodity Exchange rose 0.4 percent, and the Dalian January palm oil contract dropped 5.9 percent.
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