Malaysian palm oil futures rose 1% on Tuesday, recovering from two consecutive sessions of losses, tracking strength in rival oils and weakness in ringgit. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange extended gains closed at 2,622 ringgit ($630.90) per tonne, after shedding 0.4% in the previous session.
Palm oil rose as it tracked rival oils on the Dalian Commodities Exchange, which jumped on speculation that prices may move higher towards the end of the year, a Kuala Lumpur-based trader told Reuters. Dalian's January palm oil contract traded 1.3% higher, while the soyaoil contract rose 0.5%.
Elsewhere, soyaoil on the Chicago Board of Trade gained 0.7%. Palm is affected by price movements in related oils as they compete for share in the global vegetable oils market. Also supporting prices was a weaker ringgit, which fell 0.1% against the dollar, making the edible oil cheaper for holders of foreign currencies.