JAKARTA: Malaysian palm oil futures climbed on Monday after two consecutive sessions of losses, supported by a recovery in rival vegetable oils and weaker Malaysian ringgit.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 54 ringgit, or 1.42%, to 3,863 ringgit ($807.48) a metric ton at closing.
The contract had posted a 1.93% weekly drop on Friday.
“The futures opened gap higher following bullish momentum in Chinese vegetable oil futures and lower production estimates from SPPOMA for Feb. 1-15,” said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
Dalian Commodity Exchange’s soyoil contract jumped 1.71% while its palm oil contract rose 1.65%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. The Malaysian ringgit, the contract currency of trade, weakened 0.13% against the US dollar.
A weaker ringgit make the contract more attractive for foreign currency holders.
Exports of Malaysian palm oil products for Feb. 1-15 were seen falling by 4.31% to 17% from the previous month, cargo surveyors reported. Malaysia has maintained its March export tax for crude palm oil at 8% and raised its reference price.
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