KUALA LUMPUR: Malaysian palm oil futures opened higher on Thursday, snapping three consecutive sessions of losses, supported by stronger rival edible oils.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained RM32, or 0.71 per cent, to RM4,519 (US$1,020.09) a metric ton in early trade.
Dalian’s most-active soyoil contract rose 0.99 per cent, while its palm oil contract added 0.62 per cent. Soyoil prices on the Chicago Board of Trade were up 0.05 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices eased after surging the day before as worries about the impact of intensifying tariff wars on global economic growth and energy demand outweighed the positive sentiment from a larger-than-expected draw in US gasoline stocks.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.09 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm oil is expected to retrace toward RM4,360 per ton, as suggested by a retracement analysis and pointed by a rising trendline, Reuters technical analyst Wang Tao said.