Malaysian palm oil futures extended gains, touching a two-week high on Wednesday on improving demand, amid expectations of further weakness in the ringgit.
Benchmark palm oil futures on the Bursa Malaysia Derivatives Exchange finished 1.9% higher at 2,347 ringgit (US$583), after touching a two-week high of 2,354 ringgits earlier in the session.
Palm has seen consistent gains in the past week, after hitting a 10-month low early last week.
"We are seeing good buying interest both in cash and futures, the expectation of further weakness in the ringgit and return of major buyers are adding cadence," said a Kuala Lumpur-based trader.
"Prices are expected to remain bullish and a minor rally will resume until the end of July."
Exports of Malaysian palm oil products for July 1-20 rose 14% from a month earlier, cargo surveyor Intertek Testing Services said on Wednesday, while Societe General de Surveillance reported 15.3% export growth.
Meanwhile, the Malaysian ringgit, in which the benchmark is priced, eased for a third day, touching its weakest in nearly two weeks.
On a technical basis, palm may rise towards the next resistance at 2,374 ringgit, as suggested by a Fibonacci retracement analysis, Reuters technical analyst Wang Tao said.
The most actively-traded September contract for palm olein on the Dalian Commodity Exchange rose 0.7%, while Dalian soybean oil, a substitute for palm oil, gained 1.6%.
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