22/11/2023 (Nasdaq), Jakarta - Malaysian palm oil futures climbed on Wednesday for a third straight session, supported by strength in rival vegetable oils, a weaker ringgit and expectations of lower production.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange was up 63 ringgit, or 1.6%, at 4,016 ringgit ($858.49) a metric ton by midday.

"Palm oil futures tracking supportive external markets and weak ringgit, coupled with expectation of production on the downtrend starting this month," a Kuala Lumpur-based trader said.

Palm oil is normally affected by vegetable oil prices as they compete for a share in the global market.

The Malaysian ringgit - the contract currency of trade - was down 0.32% against the U.S. dollar, as of 0459 GMT. A weaker ringgit makes palm oil more attractive to foreign currency holders.

Weak exports may cap gains though, the trader said, as exports of Malaysian palm oil products during Nov. 1-20 were estimated to be down between 2% and 9% from the previous month, data from surveyor Intertek Testing Services, Societe Generale de Surveillance and independent inspection company AmSpec Agri Malaysia showed.

European Union palm oil imports so far in the 2023/24 season, which started in July, stood at 1.32 million tons by Nov. 19, versus 1.46 million tons a year earlier.

($1 = 4.6780 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-extends-gains-on-weaker-ringgit-stronger-rival-oils