KUALA LUMPUR: Malaysian palm oil futures gained at the close of trade on Thursday, reversing losses made earlier in the session, as firmer US soyoil prices lent support.
“Expectations for a US Department of Agriculture report tonight may be supportive, as analysts suggest the government will lower US 2019 soybean production and ending stocks,” a trader in Kuala Lumpur said.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange, for September delivery, was up 0.2 per cent at 1,941 ringgit ($471.80) per tonne at the end of the trading day, the first day of gains in four.
Palm prices were earlier weighed down by a stronger ringgit, which rose 0.6pc against the US dollar, and has strengthened 1.8pc so far since June.
A stronger ringgit, palm’s currency of trade, makes the edible oil more expensive for foreign buyers.
Meanwhile, soyoil futures on the Chicago Board of Trade were up 0.1pc, while the September soyoil contract on the Dalian Commodity Exchange also ticked up 0.1pc.
Published in Dawn, July 12th, 2019