JAKARTA: Malaysian palm oil futures rose on Friday as weaker ringgit lent support to the contract, but posted a 7.12% weekly loss due to a decline in prices of crude oil and other edible oils.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 41 ringgit, or 1.01%, to 4,084 ringgit ($912.83) a tonne, the lowest in nearly two weeks when market closed.
“We’re supported by weak ringgit but we too are following rival oils as we close at the low of the day eventhough the changes are still up,” a Kuala Lumpur-based trader told Reuters.
The ringgit, palm’s currency of trade, fell to its lowest since January 2017, making the commodity cheaper for holders of foreign currency.
Dalian’s soyoil contract and palm oil contract slipped 0.29% and 0.48%, respectively. Soyoil prices on the Chicago Board of Trade were down 0.45%.
Crude oil prices dropped on Friday after two days of gains as a strong dollar and concerns about a global economic slowdown weigh amid soaring inflation rates.