(May 16): Malaysian benchmark palm oil futures rose on Monday as a weaker ringgit spurred buying and data showed exports continued to grow in the first half of May.
The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was 1.1% higher at RM2,587 (US$643) per tonne at the close of trade.
Traded volumes were 37,951 lots of 25 tonnes each on Monday evening compared with a 2015 daily average of 44,600.
"The ringgit was weaker and exports rose, though at a slower growth rate from before," said a trader based in Kuala Lumpur, referring to export data from a cargo surveyor.
Malaysian palm oil shipments rose 14%–16% in the first half of May compared with the same period a month ago, according to data from Intertek Testing Services and Societe Generale de Surveillance.
Previous export data for the May 1–10 period showed exports had risen 22%–32% from April 1–10.
A weaker ringgit versus the US dollar also supported palm oil prices since as it makes the vegetable oil cheaper for holders of foreign currencies. The ringgit initially fell 0.2% before rising 0.05% against the dollar later.
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