JAKARTA: Malaysian palm oil futures rose on Wednesday, tracking rival vegetable oils on the Dalian Commodity Exchange, recouping some of the losses in the previous session but stronger Malaysian ringgit limited gains.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgit, or 0.95%, to 3,922 ringgit ($833.58) a metric ton at closing. It gained 1.06% in overnight trade.
“Palm oil futures are tracking gains in the Dalian market, but a firmer ringgit is capping gains,” said a Kuala Lumpur-based trader.
Dalian’s most-active soyoil contract was up 1.1%, while its palm oil contract gained 1.47%. The Chicago Board of Trade was closed for the Juneteenth holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm falls on weak export data, overnight fall in Dalian oils
Malaysian ringgit, the contract currency of trade, strengthened 0.15% against the U.S. dollar on Wednesday. A stronger ringgit makes palm oil less attractive for foreign currency holders.
European Union palm oil imports for 2023/24 stood at 3.22 million tons as of June 16, down from 3.97 million tons imported a year earlier, official data showed.
Palm oil may extend its gains into the 3,965 ringgit-4,011 ringgit range following its failure to break support at 3,889 ringgit, Reuters technical analyst Wang Tao said.
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