KUALA LUMPUR: Malaysian palm oil futures rose more than 1pc for a second day of gains on Tuesday, supported by a weaker ringgit and expected higher demand in May. The ringgit, palm’s currency of trade, weakened by 0.2% against the dollar on Tuesday evening. A weaker ringgit usually supports palm oil by making it cheaper for foreign buyers.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 1.5pc at 2,014 ringgit ($483.09) a tonne at the close.
“Palm oil rose on expectations of good exports and the weaker ringgit,” one Kuala Lumpur-based trader said, referring to Malaysian palm oil exports for May.
Palm oil could hover above 1,967 ringgit a tonne or bounce towards resistance at 2,034 ringgit, having again failed to break a support zone of 1,940-1,967 ringgit, said Reuters commodities and energy technicals analyst Wang Tao.
Published in Dawn, May 15th, 2019