JAKARTA: Malaysian palm oil futures closed higher on Monday after sliding during the midday break on higher rival oils.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange rose 2.65% to 3,716 ringgit ($795.72) per metric ton at market close.
The contract declined 3.29% last week.
The second half of the trading session mirrored the upward movement in soybean oil prices, said a Kuala Lumpur-based trader.
The ringgit, palm’s currency of trade, weakened 0.2% in early trade. A weaker ringgit made the contract more attractive to foreign currency holders.
Dalian’s most-active soyoil contract rose 0.53%, while its palm oil contract rose 0.76%. Soyoil prices on the Chicago Board of Trade were also up 1.4%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for June 1 - June 25 fell 4.5% to 891,361 metric tons from 933,615 metric tons shipped during May 1 - May 25, cargo surveyor Intertek Testing Services said.
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