(March 4): Malaysian palm oil futures rose on Friday tracking competing vegetable oils, gaining for a second consecutive day, although upsides were seen capped by a stronger ringgit.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.24% at 2,507 ringgit (US$610) per tonne at close of trade on Friday.
Palm was trending largely lower this week, falling for two sessions and hitting a one-month low of 2,470 ringgit on a stronger currency, before reversing course to gain at the close of trade on Thursday.
Traded volume stood at 42,774 lots of 25 tonnes each on Friday.
"Soybean oil closing was firmer yesterday, which expanded to this morning. The sentiment is more supportive today," said a trader based in Kuala Lumpur.
"However the ringgit is still strong, that seems to be the factor to limit palm's upside."
"However the ringgit is still strong, that seems to be the factor to limit palm's upside."
A stronger ringgit, the currency palm oil is traded in, makes the vegetable oil more expensive for holders of foreign currencies. The ringgit hit 4.1110 per dollar, gaining 0.5% late on Friday.
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