Malaysian palm oil futures edged higher on Friday after a run of losses, supported by a weaker ringgit and short covering, although they still marked a second straight weekly loss.
Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange rose 1.4% to 2,449 ringgit (US$598) per tonne at the close of trade, a first day of gains after a nine-day slide. The contract earlier dipped to 2,411 ringgit, its lowest since Jan 21.
"Palm was oversold, we're seeing short covering towards the weekend on the back of a weaker ringgit," said a trader in Kuala Lumpur.
A weaker ringgit, palm oil's currency of trade, typically helps boost benchmark prices, as it makes palm cheaper for foreign currency holders. The ringgit has weakened nearly 2% since it hit 4.0230 per dollar last Thursday, its strongest in three weeks. It fell slightly on Friday to 4.0995.
A second trader said market sentiment was still poor, despite palm's rise, which was largely due to a technical rebound.
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