JAKARTA: Malaysian palm oil futures inched higher on Thursday, as traders sought bargains after prices hit a more than six-week low in the previous session, while a stronger ringgit, weakness in related oils and disappointing export data weighed on sentiment.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 0.19% to 3,769 ringgit ($887.24) per tonne by the midday break. On Wednesday, the contract had posted its biggest single-day drop since Dec. 12.

“Bargain-buying brought some life in mid-session,” a trader in Kuala Lumpur said, adding that a stronger ringgit had been “keeping big buyers at bay.”

The Malaysian ringgit, in which palm oil is traded, strengthened against the US dollar for a fifth consecutive session, hitting its highest level since April 2022.

A stronger ringgit makes palm oil less attractive for dollar holders. Soyoil prices on the Chicago Board of Trade fell as much as 0.38% during Asia hours, extending losses to a third day.

The Dalian exchange is closed this week for the Lunar New Year celebration. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Malaysian palm oil exports for Jan. 1-25 dropped 32.9% from the same period in December, inspection company AmSpec Agri Malaysia said on Wednesday, while cargo surveyor Intertek Testing Services reported a 34.7% decline.

Palm oil may edge up to 3,980 ringgit before falling

Meanwhile, Indonesia’s 2022 exports of palm oil products declined by 8.5%, the Indonesia Palm Oil Association (GAPKI) said on Wednesday, amid sluggish production and higher domestic consumption.

Indonesia will set its crude palm oil (CPO) reference price at $879.31 per tonne for the Feb. 1-15 period, down from $920.57 in the Jan. 16-31 period, a senior official said on Wednesday.

Palm oil may test a support at 3,683 ringgit per tonne, a break below which could open the way towards the 3,500-3,606 ringgit range, Reuters technical analyst Wang Tao said.