28.06.2018 (DAWN.com) - KUALA LUMPUR: Malaysian palm oil futures jumped to their highest in over a week on Wednesday evening, supported by forecasts of weaker output and stronger related edible oils.

The market was also earlier supported by a weaker ringgit, palm’s currency of trade which typically makes the tropical oil cheaper for holders of foreign currencies.

The ringgit fell to its weakest levels against the dollar since the start of the year on Wednesday, and was last down 0.2 per cent at 4.0280 ringgit per dollar. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange rose 1.7pc to 2,315 ringgit ($574.73) per tonne at the close of trade, its strongest gains in a day since May 7. It earlier rose to an intraday high of 2,319 ringgit, its strongest levels since June 18. Trading volumes stood at 39,745 lots of 25 tonnes each at the close of trade.

“Production for June is not seen coming up,” said a futures trader in Kuala Lumpur. “Especially on the Sabah and Sarawak side, workers there are not back yet so there is not much harvesting going on.

Published in Dawn, June 28th, 2018