Malaysia's benchmark palm oil futures extended gains to a second session on Monday, helped by stronger vegetable oils, a weaker ringgit, and supportive export data.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange rose 1.71% to 4,218 ringgit ($941.52) a tonne by the end of the afternoon session. It gained 1.24% on Friday.

Palm futures were higher "on the back of strong Dalian palm oil, good export data and a further weakening of the ringgit," a trader in Kuala Lumpur said.

Dalian's palm oil contract rose 3.57%, while its soyoil contract gained 2.40%. Soyoil prices on the Chicago Board of Trade were little changed.

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

Meanwhile, the Malaysian ringgit weakened for a sixth straight session against the dollar, trading near its lowest level since 2016.

A weaker ringgit makes Malaysian palm oil more attractive for buyers with foreign currency.

Exports of Malaysian palm oil products for Aug. 1-20 rose 9.1% to 728,165 tonnes from the same period in July, cargo surveyor Intertek Testing Services said on Saturday, while independent inspection company AmSpec Agri Malaysia reported a 3.8% drop.

Palm oil may test a resistance at 4,269 ringgit per tonne, as it has managed to hover above a support at 4,085 ringgit per tonne, Reuters technical analyst Wang Tao said.

Source: Business Recorder

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PT Astra Agro Lestari Tbk published this content on 23 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2022 10:57:01 UTC.