Palm tracks rival oils higher, stronger ringgit caps gains
- The contract was primarily propped up by more expensive oils elsewhere. Dalian's most-active soyoil contract rose 1.2%, while its palm oil contract jumped 1%.
SINGAPORE: Malaysian palm oil futures rose for a third straight session on Thursday despite a US import ban on a local producer, as rival vegetable oils on the Dalian Commodity Exchange and Chicago Board of Trade strengthened.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 23 ringgit, or 0.6%, to 3,611 ringgit ($898.26) a tonne in early trade, adding about 18% so far this year.
"Palm oil is tracking gains in rival oils. The US ban had minimal impact (on prices)," a Kuala Lumpur-based trader told Reuters.
On Wednesday, the United States banned imports of palm oil from Malaysian producer Sime Darby Plantation over allegations of forced labour in the production process.
The contract was primarily propped up by more expensive oils elsewhere. Dalian's most-active soyoil contract rose 1.2%, while its palm oil contract jumped 1%.
CBOT soyoil prices were up 0.7%, after an overnight rally to a fresh 6-1/2 year high as investors turned their focus to dry weather that threatened South America's soy crops.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Meanwhile, the ringgit rose 0.4% against the dollar, making Malaysian palm oil more expensive for holders of foreign currencies.
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