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Malaysian palm oil price up tracking soy, helped by weak ringgit
KUALA LUMPUR: Malaysian palm oil futures rose on Monday, shadowing higher U.S. soyoil prices on the Chicago Board of Trade (CBOT), while a softer ringgit also supported.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 0.8% at 2,035 ringgit ($487.19) per tonne at the day’s close.
Palm oil fell last week on weaker soyoil prices and worries of slowing export demand.
Cargo surveyor Intertek Testing Services said on Saturday Malaysian palm oil products for June 1-15 dropped 22.5% from a month earlier, while independent inspection company AmSpec Agri
Malaysia saw an 18.9% decline in the same period.
On Monday, cargo surveyor Societe Generale de Surveillance said exports fell 15.3% for the same period.
“Palm is tracking soybean for leads as low exports have been factored in,” another trader said.
A weaker ringgit also makes palm oil more attractive to buyers holding foreign currencies. The Malaysian currency fell 0.29% against the U.S. dollar.
Weaker output data added support for palm, a trader said. The Chicago July soybean oil contract edged up 1.7%, reversing most of the previous session’s losses.
In other related oils, the September soyoil contract on the Dalian Commodity Exchange rose 0.5% while the Dalian September palm oil contract was down 0.4%.
Palm oil prices are affected by movements in related edible oils as they compete for a share in the global vegetable oil market. – Reuters
Source: https://www.thestar.com.my/business/business-news/2019/06/18/palm-climbs-tracking-soy-helped-by-weak-ringgit/#G2XEJEVEQdTUhOr4.99