Palm tracks rise in rival oils, firmer ringgit caps gains

SINGAPORE: Malaysian palm oil futures rose on Thursday for a second straight session as rival oils on the Dalian Commodity Exchange and the Chicago Board of Trade (CBOT) strengthened, although a stronger ringgit capped gains.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed 12 ringgit higher, or 0.4pc, at 3,377 ringgit a tonne.

"Palm is still up on strong external markets," a Kuala Lumpur-based trader said.

Dalian's most-active soyoil contract rose 2.1pc, while its palm oil contract gained 1pc. Soyoil prices on the Chicago Board of Trade rose 0.7pc.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

U.S. soybean futures edged higher on concerns over production in South America.

Exports of Malaysian palm oil products during Dec. 1 to 15 rose 9.5pc to 725,380 tonnes from a month earlier, cargo surveyor Societe Generale de Surveillance said late on Tuesday, supporting prices.

However, a 0.4pc rise in the ringgit against the dollar made the edible oil less attractive for foreign buyers.