02.09.2020 (www.brecorder.com) –
- Palm oil rose 3.2% in intraday trade on Tuesday to touch its highest level in nearly seven months.
- "The market is more focused on August production situation than the drop in exports," he added.
KUALA LUMPUR: Malaysian palm oil futures ended higher for a fifth straight session on Wednesday as a weaker ringgit helped reverse early losses, although a plunge in August exports capped gains.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 25 ringgit, or 0.90%, to 2,809 ringgit ($678.01) a tonne by the midday break. It fell as much as 0.65% earlier in the session.
Palm oil rose 3.2% in intraday trade on Tuesday to touch its highest level in nearly seven months.
A lower ringgit moved prices higher before the midday close, after profit-taking and mixed performance on China's Dalian exchange kept the contract directionless in early trade, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
"The market is more focused on August production situation than the drop in exports," he added.
The ringgit, palm's currency of trade, fell 0.07% against the dollar, making the edible oil cheaper for holders of foreign currency.
Exports of Malaysian palm oil products for August plunged between 13% and 15% from July, as shipments to top buyers India and Europe slowed, according to data from cargo surveyors.
India's palm oil imports in August fell more than 6% from a year ago to 800,000 tonnes, brokerage Sunvin said.
Output in top producer Indonesia this year is seen at 46.02 million tonnes, down from 47.11 million tonnes in 2019, the country's Palm Oil Association said on Tuesday.
Dalian's most-active soyoil contract gained 0.57%, while its palm oil contract rose 1.09%. Soyoil prices on the Chicago Board of Trade were up 0.03%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.