KUALA LUMPUR: Malaysian palm oil futures ended higher on Wednesday, snapping a two-day decline as a weaker ringgit and stronger crude futures provided support. The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 28 ringgit, or 0.83%, to 3,406 ringgit ($767.98) a tonne.
The contract rose on strength from soybean oil and Dalian edible oils, coupled with weakness in the ringgit, a Kuala Lumpur-based trader said. “However, a further recovery in far month contracts is being capped by the weakness in June spot month,” the trader added.
The ringgit, palm’s currency of trade, fell 0.48% against the dollar to its lowest since November 2022, making the commodity cheaper for holders of foreign currency.
Oil prices rose after data showed US inventories and fuel supplies tightening and following a warning from the Saudi energy minister to speculators raised the prospect of further OPEC+ output cuts. Stronger crude futures make palm oil a more attractive option for biodiesel feedstock. Dalian’s most-active soyoil contract fell 1.2%, while its palm oil contract also fell 1.2%. Soyoil prices on the Chicago Board of Trade were up 0.06%.
Comments
Comments are closed.