JAKARTA: Malaysian palm oil futures posted their best daily gain in six weeks amid stronger rivals oils and weaker ringgit and ahead of a major industry conference.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 2.19%, its biggest gain since Aug. 15, to close the afternoon trade at 3,773 ringgit ($801.74) per metric ton.
“Overnight recovery in crude and weak ringgit have supported palm prices,” a Kuala Lumpur-based trader said, adding that palm prices also moved ahead of the holiday in Malaysia and the Globoil conference.
Traders usually closely watch industry conferences such as Globoil, which is being held on Thursday to Saturday, to seek price guidance.
Oil prices rose by more than $1 a barrel on Wednesday as markets focused on supply tightness heading into winter and a “soft landing” for the US economy.
Dalian’s most-active soyoil contract rose 1.05%, while its palm oil contract increased 1.08%. Soyoil prices on the Chicago Board of Trade were 0.75% higher.
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, palm’s currency of trade, fell to its weakest since November against the US dollar, making palm oil more attractive for foreign currency holders.
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