Malaysian palm oil futures rose more than 1% for the second day of gains on Tuesday, supported by a weaker ringgit and expected higher demand in May.
The ringgit, palm’s currency of trade, weakened by 0.2% against the dollar on Tuesday evening. A weaker ringgit usually supports palm oil by making it cheaper for foreign buyers.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 1.5% at 2,014 ringgit ($483.09) a tonne at the close.
Reuters commodities and energy technical analyst Wang Tao, palm oil could hover above 1,967 ringgit a tonne or bounce towards resistance at 2,034 ringgit, having again failed to break a support zone of 1,940-1,967 ringgit.