KUALA LUMPUR: Malaysian palm oil futures were in line for a second day of gain at midday break on Tuesday, supported by gains in related edible oils and a weaker ringgit.
The ringgit, palm's currency of trade, last weakened 0.2% against the dollar around Tuesday noon. A weaker ringgit usually supports palm oil by making it cheaper for foreign buyers.
Benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was last up 0.3% at 1,991 ringgit ($477.57) a tonne around noon. It earlier rose as much as 1.1% to 2,006 ringgit.
"A recovery in competing vegetable oils and the depreciation in the local currency prompted a higher opening of palm futures prices," said a Kuala Lumpur-based trader, referring to U.S. soyoil on the Chicago Board of Trade.
Soybean prices had risen despite China's Monday announcement to impose higher tariffs on a range of U.S. goods, following Washington's decision to hike its own levies on $200 billion in Chinese imports.
Palm oil may hover above 1,967 ringgit per tonne, or bounce towards a resistance at 2,034 ringgit, as it failed to break a support zone of 1,940-1,967 ringgit again, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
In related edible oils, the Chicago July soybean oil contract last rose 0.6% on Tuesday.
Palm oil prices are affected by movements in soyoil, with which it competes for global market share.
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