KUALA LUMPUR: Malaysian palm oil futures rose to their highest in over five weeks on Thursday as the Malaysian currency slipped to its lowest since early May and stoked buying interest, although some profit-taking in late trade eroded gains.

The Malaysian ringgit fell to a four-month low ahead of the central bank’s monetary policy decision, weakening 0.8 per cent to 3.2425 against the greenback.

The benchmark December contract on the Bursa Malaysia Derivatives Exchange closed 0.1pc higher at 2,145 ringgit ($664) per tonne. Prices earlier rose to 2,173 ringgit the highest level since Aug. 13.

Total traded volume stood at 74,838 lots of 25 tonnes, more than double the usual 35,000 lots.

Technicals showed that palm oil is expected to climb to 2,213 ringgit per tonne as it has broken resistance at 2,142 ringgit, said Reuters market analyst Wang Tao.

The US soyoil contract for December edged down 0.4pc in late Asian trade, while the most active January soybean oil contract on the Dalian Commodities Exchange rose 0.1pc.

Published in Dawn, September 19th, 2014