KUALA LUMPUR, Oct 4: Malaysian crude palm oil futures ended 2.1 per cent higher on Thursday as rising prices of rival soybean oil and a weakening ringgit currency against the dollar boosted the market, traders said.

The market opened lower and trading throughout the day was lacklustre after industry analyst Dorab Mistry said the futures market was unlikely to rebound soon.

The benchmark December contract on the Bursa Malaysia Derivatives Exchange settled up 54 ringgit, or 2.1 per cent, to 2,599 ringgit ($763) a ton.

Palm prices needed to recover after three days of losses, so a stronger soyaoil market and a weakening ringgit pushed up the market, said one trader.

Dorab’s comments had the opposite effect because the market wants to go higher because of soyaoil and ringgit but trading volumes have been very low so there is strong element of caution out there. Other traded months rose between 40 and 54 ringgit.

Overall volume at 6,008 lots of 25 tons each was roughly half of 12,000 lots that change hands on a routine trading day.

It may not bounce back immediately. All markets are heavily overbought, very heavily speculatively overbought, Mistry told Reuters.Malaysian palm oil futures have lost 4 per cent since Monday, tracking to a sell-off in soybean oil and crude oil markets.

A weaker ringgit makes the ringgit-based commodity cheaper for overseas buyers.

December palm oil on Singapore’s Joint AsianDerivatives Exchange was untraded by 1025 GMT.

In the physical market, crude palm oil for October shipment in the southern region was quoted at 2,720/2,730 ringgit a ton. Trades were done between 2,710 and 2,720 ringgit.—Reuters