Malaysian palm oil futures saw their first daily gain in a week on Tuesday evening, supported by a weaker ringgit. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was up 0.6 percent at 2,683 ringgit ($633.16) a tonne at the close of trade, its first gain after four losing sessions. It earlier fell to its lowest in 1-1/2 months at 2,653 ringgit.
Traded volumes stood at 34,121 lots of 25 tonnes each at the end of the trading day. "The market was oversold and the ringgit slumped to a four-week low, so we are seeing some technical buying," said a futures trader in Kuala Lumpur, declining to be identified as she was not authorised to speak with media. "It may hold for today if the ringgit stays weak and soyaoil doesn't drop much," added the trader, referring to soyaoil on the Chicago Board of Trade (CBOT).
In other related oils, the December CBOT soyabean oil contract edged up 0.5 percent. Palm oil prices are affected by the performance of related edible oils such as soya, as they compete for a share of the global vegetable oils market. China's Dalian Commodity Exchange is closed for a national public holiday. Palm oil may bounce to 2,694 ringgit per tonne, as it could stabilise around support at 2,651 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.