(April 4): Malaysian palm oil futures reversed course to rise for a second straight day in the evening, as the ringgit weakened and as palm tracked improving competing oils.
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 0.9% to close at an intraday high of 2,773 ringgit (US$711) per tonne. Traded volumes were 32,409 lots of 25 tonnes each, lower than a 2015 daily average of 44,600 lots.
"(Palm rose on the) lower ringgit, and as other markets improve as well," a Kuala Lumpur-based trader said.
"A failed attempt to break below last week's low also rebuilt buying confidence, triggering technical strength."
The ringgit lost gains made earlier on Monday, weakening 0.3% against the dollar to reach 3.9020 in the evening. A weaker ringgit, which palm is traded in, makes the tropical oil cheaper for foreign currency holders.
Palm oil may rise into a range of 2,870 to 2,960 ringgit per tonne over the next three months, as indicated by its wave pattern and a Fibonacci ratio analysis, according to Reuters market analyst for commodities and technicals Wang Tao.
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