KUALA LUMPUR (Sept 3): Malaysian palm oil futures rose on Monday in a second session of gains, supported by a weaker ringgit and better demand prospects.
A weakening of palm oil's traded currency usually makes it cheaper for holders of other currencies. The ringgit fell 0.5% to 4.1270 against the dollar, its weakest since Nov 22.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 0.4% at RM2,258 (US$547.13) a tonne, after hitting an intraday high of RM2,260.
The contract had jumped 1.4% in the previous session, and had gained 1.3% on the week, its strongest weekly rise in three weeks.
Trading volumes stood at 28,226 lots of 25 tonnes each at the close of trade.
"The weaker ringgit supported the market," a futures trader in Kuala Lumpur said, adding that expectations of better exports also lent support to the market.
Data from cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia showed that palm oil shipments from Malaysia rose 3-4% in August.
A third cargo surveyor, Societe Generale de Surveillance, reported a 0.4% rise in shipments for the same period.
Last month, Malaysia cut its export tax on crude palm oil for September to 0%, which could encourage demand, said the trader.
In other related oils, the January soybean oil contract on China's Dalian Commodity Exchange closed up 0.4%, while the Dalian January palm oil contract closed flat. US markets are closed on Monday.
Palm oil prices are impacted by movements of other edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1101 GMT
|MY PALM OIL||SEP8||2207||+9.00||2187||2207||140|
|MY PALM OIL||OCT8||2240||+9.00||2218||2243||2077|
|MY PALM OIL||NOV8||2257||+10.00||2235||2260||13756|
|CHINA PALM OLEIN||JAN9||4894||+0.00||4822||4894||375922|
|CBOT SOY OIL||DEC8||28.77||+1.30||0||0||0|
|INDIA PALM OIL||SEP8||600.80||+1.30||599.70||601||806|
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US 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 US dollars per barrel
(US$1 = RM4.1270)
(US$1 = 71.0600 Indian rupees)
(US$1 = 6.8220 Chinese yuan)