Malaysian palm oil futures pared losses from the previous session to rise on Thursday, tracking competing vegetable oils and helped by a weaker ringgit.
The market made its strongest rise in nearly a month, matching gains on May 25.
The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 1.7% to reach RM2,643 (US$637) per tonne at the end of the trading day.
- Vegoils
Palm oil hits three-week high on weaker ringgit, stronger rival oils
Translated by Google Translator:
KUALA LUMPUR (June 2): Malaysian palm oil futures pared losses from the previous session to rise on Thursday, tracking competing vegetable oils and helped by a weaker ringgit.
The market made its strongest rise in nearly a month, matching gains on May 25.
The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 1.7% to reach RM2,643 (US$637) per tonne at the end of the trading day.
It earlier hit a three-week and intraday high of RM2,644, on track for a second straight week of gains. Traded volumes stood at 20,565 lots of 25 tonnes each at the close of trade, compared with the 2015 average of 44,600.
"Market strength is due to the stronger dollar, and external markets are higher also," said a Kuala Lumpur-based trader, referring to better performing rival oils.
The Chicago Board of Trade soyoil contract for July gained 0.7%, while the September soybean oil contract on the Dalian Commodity Exchange rose 1.6%.
A weaker ringgit versus a strengthening dollar also lent support to palm, making it cheaper for foreign currency holders. The ringgit, the currency of trade for palm oil, lost 0.1% against the dollar on Thursday evening, but earlier reached its weakest in three months at 4.1720.
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