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 percent to reach 2,643 ringgit ($637) per tonne at the end of the trading day.
It earlier hit a three-week and intraday high of 2,644 ringgit, 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 percent, while the September soybean oil contract on the Dalian Commodity Exchange rose 1.6 percent.
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 percent against the dollar on Thursday evening, but earlier reached its weakest in three months at 4.1720.
The offer price for crude palm kernel oil stood at 5,142.26 ringgit per tonne in the evening, according to price assessments by Thomson Reuters.
Comments
Comments are closed.