JAKARTA: Malaysian palm oil futures closed higher on Monday after dropping to more than a month’s low earlier in the day, boosted by strong exports data and a weaker ringgit.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange edged up 0.03% to close at 3,851 ringgit ($841.75) per tonne.
The contract fell as much as 1.51% earlier in the session to hit its lowest since Oct. 17, tracking losses in Dalian oils amid fresh lockdowns in China.
Exports of Malaysian palm oil products for Nov. 1-20 rose 9.6% compared to the same period a month earlier, cargo surveyor Intertek Testing Services said on Sunday, while independent inspection company AmSpec Agri Malaysia reported a 2.9% increase.
The Malaysian ringgit, in which the palm benchmark is traded, fell as much as 0.7% against the US dollar on Monday after a general election resulted in a hung parliament, making the edible oil cheaper for holders of foreign currencies.
Besides good export data and a weak ringgit, some recovery in prices of rival edible oils also helped lift palm, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract fell 1.28%, while its palm oil contract lost 0.15%. They lost as much as 2% and 2.38%, respectively, earlier in the day.
Soyoil prices on the Chicago Board of Trade were down 0.34%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.