Palm reverses earlier losses as ringgit edges lower

SINGAPORE: Malaysian palm oil futures pared earlier losses and edged higher on Thursday, ending three sessions of consecutive losses, as the ringgit fell for the first time in more than a week, making the edible oil cheaper for holders of foreign currency.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange traded 22 ringgit, or 0.5% higher to 4,198 ringgit ($1,010.11) a tonne by midday.

The contract fell to as low as 4,150 ringgit earlier in the session due to cheaper rivals.

The turnaround was mainly due to a weakening ringgit, a Kuala Lumpur-based trader told Reuters, which fell for the first time in more than a week.

The currency last fell 0.1% against the dollar, after eight consecutive sessions of losses.

Cheaper vegetable oils elsewhere, however, capped the gains.

The Chicago Board of Trade's soybean oil contract fell 0.9% due to concerns about export delays from the United States.

Palm falls on August export plunge, profit-taking

Palm and soybean oil prices on the Dalian Commodity Exchange meanwhile, declined 1% and 0.5%, respectively.

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

Also capping gains were lower exports in August, which fell 17.8% compared to the prior month, data from cargo surveyor Societe Generale de Surveillance showed on Wednesday.

Palm oil may break a support at 4,155 ringgit and fall into a range of 4,000 ringgit to 4,096 ringgit per tonne, Reuters analyst Wang Tao said.