Palm rises for second day; firmer ringgit, cheaper US soyoil cap gains
- Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
SINGAPORE: Malaysian palm oil futures edged higher for a second day, tracking higher prices of rival vegetable oils on the Dalian Commodity Exchange rose, although the gains were capped due to a stronger ringgit and cheaper US soyoil.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 7 ringgit, or 0.2%, to 3,557 ringgit ($880.88) a tonne during early trade. It rose 0.2% in the previous session.
"Palm oil is tracking gains on the Dalian but firm ringgit and US soyoil (have) capped gains," a Kuala Lumpur-based trader told Reuters.
Dalian's most-active soyoil contract rose 1.2%, while its palm oil contract jumped 1.4%.
Soyoil prices on the Chicago Board of Trade, however, fell 0.9% after Argentina's soy crushing companies signed a contract with the country's oilseed workers unions, ending a 20-day strike over wages that had paralyzed exports.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Meanwhile, the ringgit rose 0.3% against the dollar on Wednesday, making Malaysian palm oil more expensive for holders of foreign currencies.