#palmoil
Malaysian palm oil futures surged to a six-week high on Wednesday evening, recording a fourth consecutive session of gains, as improved demand and a recovery in rival US soy supported prices.
Palm has pared some losses in the last three trading sessions, after falling to a one-week low, tracking weaker rival oils on China's Dalian Commodity Exchange.
Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange gained 3.3% in evening trade, its strongest gains in 10 months, settling at RM2,415 (US$595) per tonne at the end of the day. It earlier rose to an intraday high of RM2,419, palm's strongest levels since June 21.
Traded volumes stood at 43,803 lots of 25 tonnes each on Wednesday evening, slightly below the 2015 average of 44,600.
One trader said the market was lifted by stronger short-term demand, while another said palm also rose on a weaker ringgit and better performing US soy on the Chicago Board of Trade.
"The recovery in US soy, which lifted China's Dalian Commodity Exchange, and a weaker ringgit helps as well," the trader said.
A weaker ringgit usually supports palm, as it makes the tropical oil cheaper for foreign currency holders. It weakened 0.7% to 4.0560 per dollar on Wednesday evening.
Palm typically tracks the performance of its rival oilseed soy, as they both compete for a share in the global vegetable oils market.
The Chicago soybean oil contract for December was up 1.4%, while the most active November soybean contract rose 0.9% on bargain hunting after falling to near four-month lows.
The January soybean oil contract on Dalian was up 0.7%.
Palm oil shipments from Malaysia, the world's second-largest producer, rose 12-15% in July from June, supported by better demand from China and Europe.
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