Palm extends gains as rivals jump, ringgit weakens

November 25, 2021: Malaysian palm oil futures extended gains for a second day on Thursday, as the ringgit weakened and they tracked higher prices of rivals on the Dalian Commodity Exchange.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 27 ringgit, or 0.6%, to 4,944 ringgit ($1,171.84) during early trade.

Dalian's most-active soyoil contract jumped 1.6%, while its palm oil contract traded 1.5% higher.

Palm oil is affected by price movements in related oils that compete in the global vegetable oils market.

Aiding prices further, ringgit fell 0.2% against the dollar, making the edible oil cheaper for holders of foreign currency.

Palm oil may test a support at 4,827 ringgit per tonne, a break below which could cause a fall into a range of 4,706 ringgit to 4,781 ringgit, Reuters technicals analyst Wang Tao said.

Reuters