KUALA LUMPUR: Malaysian palm oil futures inched higher on Monday, as a weaker ringgit and technical buying supported the market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 14 ringgit, or 0.31%, to 4,550 ringgit ($1,044.30) a metric ton during the midday break.
The crude palm oil futures market recovered from early losses to close higher at the midday as it was supported by technical buying and a weaker ringgit, a Kuala Lumpur-based trader said.
The ringgit, palm’s currency of trade, weakened 0.46% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Dalian’s most-active soyoil contract fell 1.66%, while its palm oil contract lost 1.6%. Soyoil prices on the Chicago Board of Trade were down 2.47%.
Palm surges for fourth day on lower stockpiles, possible production drop
Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
Oil prices tumbled more than $3 a barrel after Israel’s retaliatory strike on Iran over the weekend bypassed Tehran’s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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