KUALA LUMPUR: Malaysian palm oil futures rose for a second straight session on Thursday, helped by a weaker ringgit, although gains were capped by weak demand and estimates of higher production.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 56 ringgit, or 1.64%, to 3,463 ringgit ($780.83) a tonne by the midday break.

Market participants are awaiting May 1-25 shipment data from cargo surveyors, due later in the day, for further direction.

“Malaysia’s palm oil export during May 1-25 period is expected to show a negative growth, while production in the second half of May is expected to grow more,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

The Indian government ruling out an increase in edible oil import duty despite a sharp fall in domestic prices of cooking oils is another positive news for Malaysian palm oil, he said.

The ringgit fell 0.63% against the dollar to hit its lowest since November 2022, making the commodity cheaper for buyers holding foreign currency.

Dalian’s most-active soyoil contract fell 0.2%, while its palm oil contract was unchanged.

Palm oil ends at over three-week low on slow demand

Soyoil prices on the Chicago Board of Trade were up 0.2%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

The world’s two biggest palm oil producers Indonesia and Malaysia will send top officials to the European Union next week to voice concern over a new deforestation law they believe could be detrimental to small farming businesses.

Palm oil looks neutral in a narrow range of 3,363-3,418 ringgit per tonne and an escape could suggest a direction, Reuters technical analyst Wang Tao said.