KUALA LUMPUR: Malaysian palm oil futures extended gains to a fresh one-week high in early trade on Wednesday, in line for a second winning session, on the back of a weaker ringgit.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rose 1 percent to 2,194 ringgit ($529.70) a tonne at the midday break, after earlier reaching a one-week top of 2,199 ringgit.
In its previous trading session, it had fallen to a two-week low of 2,139 ringgit.
"The continuous depreciation of the local currency is likely to have palm prices climbing," said a futures trader based in Kuala Lumpur, as the ringgit is palm's traded currency.
A weaker ringgit would make palm oil cheaper for foreign buyers. It depreciated against the dollar during the first half of trade on Tuesday, and was last down 0.3 percent at 4.1430, its weakest levels in nearly three months.
In other related oils, the Chicago May soybean oil contract gained 0.2 percent, and the May soyoil contract on the Dalian Commodity Exchange was slightly up 0.04 percent. Meanwhile, the Dalian May palm oil contract rose 0.3 percent.
Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.
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