Palm surges on stronger Dalian oils, weak ringgit
KUALA LUMPUR: Malaysian palm oil futures extended gains to the third straight session on Tuesday after a long weekend holiday, supported by stronger rival Dalian oils and a weak ringgit.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained RM104, or 2.73 per cent, to RM3,918 (US$905.48) a metric ton in early trade, the biggest daily gain since March 7.
The market in Malaysia was closed on Monday for the Vesak holiday.
FUNDAMENTALS
Dalian's most-active soyoil contract rose 0.69 per cent, while its palm oil contract added 1.01 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) dropped 0.28 per cent.
Palm oil tracks prices of rival edible oils as it competes for a share of the global vegetable oils market.
The ringgit, palm's currency of trade, weakened 0.77 per cent against the US dollar, making the commodity cheaper for buyers holding foreign currencies.
Oil prices eased on Tuesday from a two-week high reached in the previous session, after the US and China agreed to temporarily slash tariffs, sparking optimism that a trade war between the world's two biggest economies would come to an end.
MARKET NEWS
Asian stocks joined the global rally and the US dollar held on to most of its gains on Tuesday as investors heaved a sigh of relief after a temporary halt in the trade war between the US and China eased worries of a global recession.
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