KUALA LUMPUR: Malaysian palm oil futures ended higher after reversing earlier losses on Monday, as stronger crude oil prices and a softer ringgit supported the market while weaker rival Dalian oils capped the gains.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 7 ringgit, or 0.17%, to 4,125 ringgit ($961.09) a metric ton at the close.
The contract has risen for four consecutive sessions.
Higher crude oil prices during Asian hours limited the decline on palm prices despite weaker Dalian palm olein, a Kuala Lumpur-based trader said.
“The weaker ringgit also lent support to the market,” the trader added.
Dalian’s most-active soyoil contract fell 0.44%, while its palm oil contract shed 0.33%. Soyoil on the Chicago Board of Trade (CBOT) added 0.59%.
Palm subdued as strong crude oil, Chicago soyoil counter weak Dalian
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices jumped to their highest since January as the United States’ weekend move to join Israel in attacking Iran’s nuclear facilities stoked supply concerns.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.99% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
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