SINGAPORE: Malaysian palm oil futures extended gains for a second day on Thursday, as the ringgit weakened and they tracked higher prices of rivals on the Dalian Commodity Exchange, although weaker crude oil prices capped the gains.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange edged 7 ringgit higher, or 0.6%, to 4,923 ringgit ($1,164.38).
Dalian’s most-active soyoil contract jumped 1.6%, while its palm oil contract traded 1.8% higher.
Palm oil is affected by price movements in related oils that compete in the global vegetable oils market.
Aiding prices further, ringgit fell 0.5% against the dollar, making the edible oil cheaper for holders of foreign currency.
Also supporting prices were stronger exports in the November 1-25 period, which grew 10.9% compared to the same period a month earlier, cargo surveyor Intertek Testing Services said.
Capping the gains, however, were weaker crude oil prices.
Oil prices edged down on Thursday with investors waiting to see how major producers respond to the emergency crude release by major consuming countries designed to cool the market, even as data pointed to healthy US fuel demand.
Cheaper crude oil makes palm less attractive to be used as feedstock for biodiesel.
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