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NEWS ADMIN

DATE

19/06/2017

NEWS PROVIDER

Nazlin Ismail

NEWS SOURCE

The Star Online

CATEGORY

HEADLINE

Palm oil gains over 1% on stronger rival oils, weaker ringgit

17/06/2017 (The Star Online) - KUALA LUMPUR: Malaysian palm oil futures rose more than 1 percent on Friday evening, charting a third straight day of gains, supported by a weaker ringgit and rising related edible oils.

 

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 1.4 percent at 2,484 ringgit a tonne at the close of trade.

 

Traded volumes stood at 42,240 lots of 25 tonnes each.

 

"Gains in rival oilseed soy and Chinese palm olein boosted market sentiment," a futures trader in Kuala Lumpur said. "The depreciation in the ringgit may also weigh in and spur buying."

 

A declining ringgit, palm's traded currency, typically supports the market by making the tropical oil cheaper for holders of foreign currencies.

 

The ringgit fell to a two-week low earlier in the day, and was last down 0.2 percent.

 

Palm oil prices also track the movements of related edible oils including soyoil, as they compete for a share in the global vegetable oils market.

 

Soybean oil on the Chicago Board of Trade rose 0.4 percent, in line with a stronger performing soybean due to rising demand in the United States on higher-than-expected crushings in May.

 

In other related oils, September soybean oil on the Dalian Commodity Exchange rose 0.7 percent, while the September palm olein contract was up 1.4 percent. - Reuters