Malaysian palm oil futures rose more than 1% for a second day of gains on Tuesday, supported by a weaker ringgit and expectated higher demand in May. The ringgit, palm's currency of trade, weakened by 0.2% against the dollar on Tuesday evening. A weaker ringgit usually supports palm oil by making it cheaper for foreign buyers.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 1.5% at 2,014 ringgit ($483.09) a tonne at the close. "Palm rose on expectations of good exports and the weaker ringgit," one Kuala Lumpur-based trader said, referring to Malaysian palm oil exports for May.
Shipment data from cargo surveyors is scheduled for release after 0300 GMT on Wednesday. Palm oil could hover above 1,967 ringgit a tonne or bounce towards resistance at 2,034 ringgit, having again failed to break a support zone of 1,940-1,967 ringgit, said Reuters commodities and energy technicals analyst Wang Tao. In related edible oils, the Chicago July soyabean oil contract was ip 0.9%.
Palm oil prices are affected by movements in soyaoil, with which it competes for global market share. For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type. To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in and press enter, or double click between the brackets. Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11.
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