Malaysian palm oil futures rose more than 1 percent on Friday evening, charting a third straight day of gains, supported by a weaker ringgit and rising related edible oils.The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 1.4 percent at 2,484 ringgit a tonne at the close of trade.
Traded volumes stood at 42,240 lots of 25 tonnes each."Gains in rival oilseed soya and Chinese palm olein boosted market sentiment," a futures trader in Kuala Lumpur said. "The depreciation in the ringgit may also weigh in and spur buying."A declining ringgit, palm's traded currency, typically supports the market by making the tropical oil cheaper for holders of foreign currencies.
Palm oil prices also track the movements of related edible oils including soyaoil, as they compete for a share in the global vegetable oils market.Soyabean oil on the Chicago Board of Trade rose 0.4 percent, in line with a stronger performing soyabean due to rising demand in the United States on higher-than-expected crushings in May.In other related oils, September soyabean oil on the Dalian Commodity Exchange rose 0.7 percent, while the September palm olein contract was up 1.4 percent.
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