Malaysian palm oil futures rose over 1% on Wednesday before paring some gains, lifted by higher overnight prices of soyaoil on the Chicago Board of Trade (CBOT) and a technical correction. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was last up 0.3% at 2,187 ringgit ($521.96) per tonne at the close of trade.
It earlier rose as much as 1.7% to an intraday top of 2,217 ringgit. A Kuala Lumpur-based futures trader said overnight gains in US soyaoil provided support to palm prices, but added that the ringgit's strength could limit palm's increases. Another trader said the market was also up on a technical correction after declining over 2% in trade on Tuesday, its sharpest daily fall in four months.
The ringgit, palm's currency of trade, rose against the dollar by 0.4% on Wednesday evening to 4.2040, making the edible oil more expensive for foreign buyers.
In related oils, US soyaoil futures on the Chicago Board of Trade had jumped 1.1% on Tuesday, but were last down 0.8% on Wednesday.
Meanwhile, the September soyaoil contract on the Dalian exchange edged up 1.6% and the Dalian September palm oil contract fell 0.8%.
Palm oil prices are affected by movements in related oils, as they compete for a share in the global vegetable oils market.
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