KUALA LUMPUR: Malaysian palm oil futures jumped more than 3% on Tuesday, set to end a three-session decline on a weaker ringgit, improving exports and strength in rival edible oils.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 115 ringgit, or 3.11%, to 3,809 ringgit ($823.21) per metric ton by the midday break.
The market is seeing an upside correction after a few days of lackluster trading that caused a widening of the price spread between bean oil and palm oil, a Kuala Lumpur-based trader said.
India’s palm oil imports in July jumped 59% from the previous month to 1.08 million metric tons, the highest in seven months, as refiners took advantage of lower prices to increase purchases, a trade body said on Monday.
Palm oil ends lower for third session; rising exports cap losses
The ringgit, palm’s currency of trade, fell for a fourth consecutive day against the dollar, making palm oil cheaper for buyers holding foreign currency.
Merchant ships remained backed up in lanes around the Black Sea on Monday as ports struggled to clear backlogs amid growing unease among insurers and shipping companies a day after a Russian warship fired warning shots at a cargo vessel.
Dalian’s most-active soyoil contract gained 2.2%, while its palm oil contract rose 2%.
Soyoil prices on the Chicago Board of Trade were up 0.1%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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