Malaysian palm oil price climbs more than 1% as ringgit weakens

• May 15, 2019

KUALA LUMPUR: Malaysian palm oil futures rose more than 1% for a second day of gains on Tuesday, supported by a weaker ringgit and expectated higher demand in May.

The ringgit, palm’s currency of trade, weakened by 0.2% against the dollar on Tuesday evening. A weaker ringgit usually supports palm oil by making it cheaper for foreign buyers.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 1.5% at 2,014 ringgit ($483.09) a tonne at the close.

“Palm rose on expectations of good exports and the weaker ringgit,” one Kuala Lumpur-based trader said, referring to Malaysian palm oil exports for May.

Shipment data from cargo surveyors is scheduled for release after 0300 GMT on Wednesday.

Palm oil could hover above 1,967 ringgit a tonne or bounce towards resistance at 2,034 ringgit, having again failed to break a support zone of 1,940-1,967 ringgit, said Reuters commodities and energy technicals analyst Wang Tao.

In related edible oils, the Chicago July soybean oil contract was ip 0.9%.

Palm oil prices are affected by movements in soyoil, with which it competes for global market share. – Reuters

Source: https://www.thestar.com.my/business/business-news/2019/05/15/palm-jumps-more-than-1-as-ringgit-weakens/#5ERBIULrPFJzQH2w.99