JAKARTA: Malaysian palm oil rebounded on Thursday after plunging to a near 20-month low in the previous session, buoyed by expectations for solid exports data and a weaker ringgit.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose 3.63% to 3,343 ringgit ($721.56) per tonne by the end of the afternoon trade, having hit its lowest level since early February 2021 on Wednesday.
The contract broke a five-session losing streak during which it fell about 17%.
“Today is a correction day on the back of slightly supportive external market, weak ringgit and potentially better export data tomorrow,” a Kuala Lumpur-based palm oil trader said. A weaker ringgit makes palm oil cheaper for buyers holding the US currency.
For the Sept. 1-25 period, exports rose between 18.6% and 20.9% from a month ago, cargo surveyors said. They will release exports data of Malaysian palm oil products for the entire month on Friday.
Dalian’s most-active soyaoil contract rose 1.02%, while its palm oil contract slid 0.73%. Soyaoil prices on the Chicago Board of Trade gained 0.5%.
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