KUALA LUMPUR (Aug 7): Malaysian palm oil futures jumped by more than 1% to its highest in nearly a month on Tuesday, extending gains into a third session on strength in related edible oils and earlier weakness in the ringgit.
The ringgit had hit its weakest since Dec 27 on Tuesday, but closed up 0.1% at 4.0470 against the dollar.
Weakness in palm's currency of trade, supports the vegetable oil price by making it cheaper for holders of foreign currencies.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.3% at 2,235 ringgit (US$548.60) a tonne at the close. It earlier hit an intraday high of 2,237 ringgit, its strongest levels since July 11.
Trading volumes stood at 52,881 lots of 25 tonnes each.
"The market was tracking soybean oil during Asian hours," said a trader in Kuala Lumpur, referring to U.S. soyoil on the Chicago Board of Trade.
Palm oil prices are influenced by the performance of other edible oils, as they compete for a share in the global vegetable oils market.
The Chicago December soybean oil contract jumped 1%, while the September soybean oil contract on China's Dalian Commodity Exchange was up 0.6%.
U.S. soyoil rose in line with a rebound in soybean prices, after the U.S. Department of Agriculture pegged the crop condition below market expectations.
Meanwhile, the Dalian September palm oil contract edged up 0.3%.
Palm, soy and crude oil prices at 1116 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG8 0 +15.00 0 0 0
MY PALM OIL SEP8 2215 +23.00 2188 2215 2686
MY PALM OIL OCT8 2237 +29.00 2199 2237 17508
CHINA PALM OLEIN JAN9 4912 +16.00 4878 4920 238408
CHINA SOYOIL JAN9 5878 +38.00 5832 5894 337878
CBOT SOY OIL DEC8 29.08 +0.06 28.79 29.1 3724
INDIA PALM OIL AUG8 594.80 +2.70 591.70 595.3 760
INDIA SOYOIL AUG8 737.5 +3.65 733.5 737.65 8440
NYMEX CRUDE SEP8 69.75 +0.74 68.81 69.75 102927
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
(US$1 = 4.0740 ringgit)
(US$1 = 68.6900 Indian rupees)
(US$1 = 6.8245 Chinese yuan)