Palm gains nearly 3% on costlier US soyoil, weaker ringgit
- Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
SINGAPORE: Malaysian palm oil futures climbed nearly 3% on Wednesday, extending gains into a third session, as rival Chicago Board of Trade (CBOT) soyoil rose and the ringgit weakened.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 100 ringgit, or 2.9%, to 3,637 ringgit ($901.14) a tonne in early trade.
"Prices are up because of higher externals," a Kuala Lumpur-based trader told Reuters.
CBOT soyoil rose for the third straight session on Tuesday and was last up 0.5% as extreme cold weather in key US growing areas raised worries about global supplies.
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 fell 0.2% against the dollar, making the edible oil more attractive for holders of foreign currencies.
Palm oil's May contract may retest a resistance at 3,589 ringgit per tonne, a break above which could lead to a gain into a range of 3,624-3,662 ringgit, Reuters analyst Wang Tao said.
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