Malaysian palm oil futures edged higher on Friday after a run of losses, supported by a weaker ringgit and short covering, although they still marked a second straight weekly loss.
Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange rose 1.4 percent to 2,449 ringgit ($598) per tonne at the close of trade, a first day of gains after a nine-day slide. The contract earlier dipped to 2,411 ringgit, its lowest since Jan. 21.
"Palm was oversold, we're seeing short covering towards the weekend on the back of a weaker ringgit," said a trader in Kuala Lumpur.
A weaker ringgit, palm oil's currency of trade, typically helps boost benchmark prices as it makes palm cheaper for foreign currency holders. The ringgit has weakened nearly 2 percent since it hit 4.0230 per dollar last Thursday, its strongest in three weeks. It fell slightly on Friday to 4.0995.
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Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange rose 1.4 percent to 2,449 ringgit ($598) per tonne at the close of trade, a first day of gains after a nine-day slide. The contract earlier dipped to 2,411 ringgit, its lowest since Jan. 21.
"Palm was oversold, we're seeing short covering towards the weekend on the back of a weaker ringgit," said a trader in Kuala Lumpur.
A weaker ringgit, palm oil's currency of trade, typically helps boost benchmark prices as it makes palm cheaper for foreign currency holders. The ringgit has weakened nearly 2 percent since it hit 4.0230 per dollar last Thursday, its strongest in three weeks. It fell slightly on Friday to 4.0995.
For Free Signals and other KLSE online updates, click here OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
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