Palm oil rises 1% on higher soybean oil, weaker ringgit

Malaysian palm oil futures rose 1% on Tuesday, recovering from sharp losses in the previous session, as rival oils advanced and the ringgit weakened.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 32 ringgit, or 1.18%, at 2,741 ringgit ($652.93) a tonne by 0247 GMT.

Palm fell 1.8% on Monday after cargo surveyors said Malaysia's palm oil exports for Aug. 1-10 dropped between 4.8% and 6.2% from the previous month.

FUNDAMENTALS

Malaysia's palm oil end-July stockpiles plunged 10.55% from June to three-year lows while output fell 4.14%, but the declines were less than market expectations, according to Malaysian Palm Oil Board data released on Monday.

Palm oil imports into the European Union and Britain in the 2020/21 season were down 17% from the previous season, official EU data showed on Monday.

The ringgit, palm's currency of trade, was 0.12% weaker against the dollar, making the edible oil cheaper for holders of foreign currency.

Dalian's most-active soyoil contract gained 1.23% while its palm oil contract was up 0.68%. Soyoil prices on the Chicago Board of Trade were trading 0.39% higher.

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

MARKET NEWS

Asian stocks were set for a cautious start on Tuesday, following a mixed Wall Street session and as investors eyed stalled U.S. stimulus efforts and worsening strains between Washington and Beijing over Hong Kong.