(March 7): Malaysian palm oil futures jumped on Monday to their highest in a week, tracking gains in rival soyoil, although firmness in ringgit capped the upside.
The palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange closed up 1.2% at RM2,537 (US$621.81) per tonne. Palm earlier rose to RM2,543, the highest since Feb 29.
"Palm oil has been getting good support from a rebound in crude oil and soyoil prices," said a Kuala Lumpur-based trader.
"The strengthening Malaysian ringgit is limiting the upside."
The Malaysian currency firmed 0.75% versus the dollar, making the tropical oil which is priced in the ringgit expensive for holders of other currencies.
Traded volume stood at 21,165 lots of 25 tonnes each, significantly below 42,774 lots traded on Friday.
"Volumes were thin since people want to know what key analysts and producers say in the conference," said the trader, referring to the Palm and Lauric Oils Outlook Conference in Kuala Lumpur from March 7 to March 9.
Palm oil may break a resistance at RM2,538 per tonne, and rise into a range of RM2,559–RM2,580, said Wang Tao,Reuters market analyst for commodities and energy technicals.
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