KUALA LUMPUR: Malaysian palm oil futures opened higher on Friday for a second straight session, supported by stronger rival Dalian oils and a weak ringgit.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained RM47, or 1.24 per cent, to RM3,848 (US$890.74) a metric ton in early trade.
The contract has lost 1.19 per cent so far this week and is poised to log a second consecutive weekly decline.
FUNDAMENTALS
Dalian's most-active soyoil contract rose 1.21 per cent, while its palm oil contract added 1.32 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) eased 0.08 per cent.
Palm oil tracks prices of rival edible oils as it competes for a share of the global vegetable oils market.
The ringgit, palm's currency of trade, weakened 1.01 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Oil prices were little changed after rising more than 3 per cent on Thursday, as trade tensions between top oil consumers US and China showed signs of easing and Britain announced a "breakthrough" trade deal with the United States.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may bounce more into the RM3,867-RM3,906 per metric ton range, as it has stabilized around support at RM3,702, Reuters technical analyst Wang Tao said.
MARKET NEWS
Japanese stocks jumped on Friday, supported by the dollar's surge against the yen, after a US trade deal with Britain fuelled hopes of progress in tariff talks with other countries.
