JAKARTA: Malaysian palm oil futures rose for a third straight session to its highest in nearly three months on Wednesday, supported by gains in rival Dalian oils and a weaker ringgit, but weak Chicago soyoil limits gain.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange climbed 0.27% to 4,159 ringgit ($979.05) a ton at closing.
Palm was supported by good gains in Dalian’s RBD palm olein and a continued depreciation of the local currency, said a Kuala Lumpur-based trader.
Dalian’s most-active soyoil contract gained 0.15%, while its palm oil contract climbed 1.45%. Soyoil prices on the Chicago Board of Trade were down 0.74%
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Malaysian palm oil futures rise on strong crude oil
The ringgit, palm’s currency of trade, weakened 0.26% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm oil may test resistance at 4,195 ringgit per ton, a break above which could lead to a gain into the 4,219 ringgit to 4,233 ringgit range, Reuters technical analyst Wang Tao said.
Meanwhile, an Indonesian palm oil group said on Tuesday the country’s exports to the United States may fall due to the 32% tariffs threatened on Indonesian goods, allowing competitors in Malaysia to gain market share as they face lower tariffs.
