Malaysian palm oil price climbs on stronger rival oils, weaker ringgit

palm oil aerial

KUALA LUMPUR: Malaysian palm oil futures rose on Monday, tracking higher edible oil prices and a weaker ringgit, but demand concerns capped gains as top buyer India has imposed a national lockdown due to the coronavirus pandemic.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange climbed 42 ringgit, or 1.77%, to 2,420 ringgit (US$555.94) per tonne during early trade, gaining for a second straight session.

Palm had firmed 1.64% last week, its third weekly gain, on worries over disruption in supply as Malaysia enforced a one-month restricted movement order and instructed some plantations to shut down due the coronavirus.

FUNDAMENTALS

* India's Prime Minister Narendra Modi has locked down the country for three weeks to contain the virus, shutting down Asia's third-largest economy and delaying discharge of edible oil imports at the ports.

* Dalian's most-active soyoil contract gained 0.81%, while its palm oil contract jumped 2.7%. Soyoil prices on the Chicago Board of Trade were up 0.04%.

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

* The ringgit, palm's currency of trade, fell 0.46% against the dollar, making the edible oil cheaper for holders of foreign currency. - Reuters