VEGOILS-Palm extends five-day rally on lower output worries, weaker ringgit
20/06/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures inched up on Tuesday for a sixth straight session as the ringgit weakened and traders fretted about lower output estimates.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 17 ringgit, or 0.45%, to 3,774 ringgit ($814.06) per metric ton by the midday break.
The market has been trading sideways since Monday as it is taking a breather after a strong rally last week in almost every global vegetable oils and oilseeds, Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Cargo surveyors are scheduled to release June 1-20 export data later in the day, with traders expecting a decline in shipment from the world's second largest producer.
The Southern Peninsula Palm Oil Millers' Association estimated June 1-15 production in some parts of Malaysia will fall 4.6% from the month before amid hot and dry weather, according to traders and analysts.
The ringgit MYR=, palm's currency of trade, fell 0.24% against the dollar, making the commodity cheaper for buyers holding foreign currency.
Dalian's most-active soyoil contract DBYcv1 rose 0.9%, while its palm oil contract DCPcv1 gained 0.8%. Soyoil prices on the Chicago Board of Trade BOcv1were up 0.05%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
($1 = 4.6360 ringgit)
Source: Reuters