Palm reverses losses to gain on firmer US soyoil

KUALA LUMPUR: Malaysian palm oil futures gained at the close of trade on Thursday, reversing losses made earlier in the session, as firmer US soyoil prices lent support.

"Expectations for a US Department of Agriculture report tonight may be supportive, as analysts suggest the government will lower US 2019 soybean production and ending stocks," a trader in Kuala Lumpur said.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange, for September delivery, was up 0.2% at 1,941 ringgit ($471.80) per tonne at the end of the trading day, the first day of gains in four.

Palm prices were earlier weighed down by a stronger ringgit , which rose 0.6% against the US dollar, and has strengthened 1.8% so far since June.

A stronger ringgit, palm's currency of trade, makes the edible oil more expensive for foreign buyers.

Meanwhile, soyoil futures on the Chicago Board of Trade were up 0.1%, while the September soyoil contract on the Dalian Commodity Exchange also ticked up 0.1%.

The Dalian September palm oil contract was last trading flat around 1100 GMT.

Palm oil prices are impacted by movements in related oils, as they compete for a share in the global vegetable oils market.