KUALA LUMPUR (April 17): Malaysian palm oil futures rose for a second straight session and marked their strongest daily gain in two weeks, on Wednesday on the back of a weaker ringgit.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed 1.5% higher at 2,205 ringgit a tonne.
It had reached a one-week high of 2,219 ringgit earlier in the day.
"The continuous depreciation of the local currency is likelyto have palm prices climbing," said a futures trader based in Kuala Lumpur, as the ringgit is palm's traded currency.
A weaker ringgit would make palm oil cheaper for foreign buyers. Malaysia's currency depreciated against the dollar and weakened as much as 0.3% on Wednesday, before paring some losses. It was last down 0.1% at 4.1330 in the evening.
Another trader said slower-than-expected output growth added more support to palm prices later in the day.
In related oils, the Chicago May soybean oil contract gained 0.5%, and the May soyoil contract on the Dalian Commodity Exchange was up 0.3%.
Meanwhile, the Dalian May palm oil contract rose 0.6%.
Palm oil prices are affected by movements in soyoil, as they compete for a share of the global vegetable oils market.
Palm, soy and crude oil prices at 1100 GMT
|MY PALM OIL||MAY9||2130||+25.00||2119||2144||728|
|MY PALM OIL||JUN9||2189||+34.00||2161||2201||6653|
|MY PALM OIL||JUL9||2207||+32.00||2180||2219||15836|
|CHINA PALM OLEIN||MAY9||4456||+28.00||4424||4466||48992|
|CBOT SOY OIL||MAY9||28.85||+0.13||28.71||28.94||4229|
|INDIA PALM OIL||APR9||0.00||+0.00||0.00||0||0|
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 = 4.1420 ringgit)
(US$1 = 6.7012 Chinese yuan)
(US$1 = 69.5460 Indian rupees)