Malaysian palm oil futures ended slightly higher on Friday, after trading lower for most of the session. Prices were earlier weighed down by a stronger ringgit, and weaker related edible oils on the US Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange. "The market rose mostly on short covering, despite weaker external markets and the ringgit strengthening," said a Kuala Lumpur based futures trader.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.2% at 1,944 ringgit ($472.88) per tonne at the close of trade, its second straight session of gains. It has lost 0.8% this week, however, in its second weekly fall in three.
The ringgit strengthened against the dollar on Friday evening to trade around a three-month high, and was last up 0.1% at 4.1110. A stronger ringgit typically makes palm oil more expensive for foreign buyers. In other related oils, US soyaoil futures on the CBOT were down 0.6%, while the September soyaoil contract on Dalian fell 0.8%. The Dalian September palm oil contract also eased 0.5%. Palm oil prices are impacted by movements in related oils, as they compete for a share in the global vegetable oils market.