JAKARTA: Malaysian palm oil futures rose for a second straight session on Thursday, underpinned by gains in Dalian palm oil and a weaker ringgit.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 12 ringgit, or 0.32%, to 3,766 ringgit ($860.41) a metric ton by 0249 GMT.
Palm oil climbs to two-week high on muted Indonesia supply outlook
The contract traded in a range of 3,741 to 3,773 ringgit in early trade.
Fundamentals
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Dalian’s palm oil contract gained 0.73%, while the most-active soyoil contract was down 0.03%. Soyoil prices on the Chicago Board of Trade fell 1%.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Exports of Malaysian palm oil products for Aug. 1-20 fell between 16.7% and 18.4% from a month earlier, data from cargo surveyors Societe Generale de Surveillance (SGS), Intertek Testing Services and AmSpec Agri Malaysia showed.
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The Malaysian ringgit, palm’s currency of trade, inched lower for a second straight session. A weaker ringgit makes the vegetable oil more attractive to foreign currency holders.
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Palm oil may retest resistance of 3,782 ringgit per metric ton, a break above could confirm both a target of 3,809 ringgit and an inverted head-and-shoulders.
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