KUALA LUMPUR: Malaysian palm oil futures reversed early losses to end higher on Wednesday evening, supported by a weaker ringgit and tracking gains in crude oil and soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.4 per cent at 1,981 ringgit ($481.70) per tonne at the close of trade.
“The market rose, tracking crude oil and CBOT soyoil that recovered, as well as on a weaker ringgit,” said a futures trader based in Kuala Lumpur. The ringgit, palm’s currency of trade, fell 0.1pc against the dollar to 4.1125 on Wednesday evening, though it was still trading at three-month highs.
A weaker ringgit makes the edible oil cheaper for foreign buyers. Meanwhile, oil prices regained little ground lost in the previous session, weighed down by industry data suggesting US crude inventories fell less than expected. US soyoil prices were last up 0.4pc on Wednesday, while the September soyoil contract on the Dalian exchange fell 0.3pc.
Meanwhile, the Dalian September palm oil also slid 0.6pc. Palm oil prices are affected by movements in related oils that compete for a share of the global vegetable oils market.
Published in Dawn, July 18th, 2019