KUALA LUMPUR: Malaysian palm oil futures rose on Friday, scoring a third day of gains in four, tracking strength in US soyoil on the Chicago Board of Trade. Palm also recorded a weekly gain, up 1.3 per cent, supported by declines in the ringgit earlier this week.
A weaker ringgit, palm’s currency of trade, usually makes the edible oil cheaper for foreign buyers. The ringgit declined 0.4pc this week against the dollar after a global index provider said it could drop Malaysia from the FTSE World Government Bond Index due to market accessibility and liquidity concerns.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 0.3pc to 2,190 ringgit ($530.27) a tonne at the close of trade.
“Palm is up tracking US soyoil,” said a Kuala Lumpur-based futures trader. “Moving forward, the market is looking at the export pace also, which is likely to be good.”
Malaysia palm oil shipments had gained between 1.5-6.7pc for the April 1-15 period versus the corresponding duration in March, according to cargo surveyor data. Data for April 1-20 is scheduled for release on Saturday and Monday by cargo surveyors.
Published in Dawn, April 20th, 2019