Palm reverses earlier losses as ringgit edges lower

Malaysian palm oil futures pared earlier losses and edged higher on Thursday, ending three sessions of consecutive losses, as the ringgit fell for the first time in more than a week, making the edible oil cheaper for holders of foreign currency.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange traded 22 ringgit, or 0.5% higher to 4,198 ringgit ($1,010.11) a tonne by midday.

The contract fell to as low as 4,150 ringgit earlier in the session due to cheaper rivals.

The turnaround was mainly due to a weakening ringgit, a Kuala Lumpur-based trader told Reuters, which fell for the first time in more than a week.

The currency MYR= last fell 0.1% against the dollar, after eight consecutive sessions of losses.

Cheaper vegetable oils elsewhere, however, capped the gains.

The Chicago Board of Trade’s soybean oil contract BOcv1 fell 0.9% due to concerns about export delays from the United States.

Palm DCPv1 and soybean oil DBYv1 prices on the Dalian Commodity Exchange meanwhile, declined 1% and 0.5%, respectively.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Also capping gains were lower exports in August, which fell 17.8% compared to the prior month, data from cargo surveyor Societe Generale de Surveillance showed on Wednesday.

Palm oil FCPOc3 may break a support at 4,155 ringgit and fall into a range of 4,000 ringgit to 4,096 ringgit per tonne, Reuters analyst Wang Tao said.
Source: Reuters (Reporting by Fathin Ungku; Editing by Shounak Dasgupta and Rashmi Aich)