KUALA LUMPUR: Malaysian palm oil futures inched higher on Monday, as a weaker ringgit and technical buying supported the market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 14 ringgit, or 0.31%, to 4,550 ringgit ($1,044.30) a metric ton during the midday break.
The crude palm oil futures market recovered from early losses to close higher at the midday as it was supported by technical buying and a weaker ringgit, a Kuala Lumpur-based trader said.
The ringgit, palm’s currency of trade, weakened 0.46% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Dalian’s most-active soyoil contract fell 1.66%, while its palm oil contract lost 1.6%. Soyoil prices on the Chicago Board of Trade were down 2.47%.
Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
Oil prices tumbled more than $3 a barrel after Israel’s retaliatory strike on Iran over the weekend bypassed Tehran’s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.
