Malaysian palm oil futures ended higher on Wednesday, after declining in the previous session, buoyed by a softer ringgit though weaker crude and rival edible oils capped gains.
The benchmark palm oil contract (FCPOc3) for September delivery on the Bursa Malaysia Derivatives Exchange rose 11 ringgit, or 0.24%, to 4,557 ringgit ($1,113.64) a metric ton at the close.
The market was earlier supported by a rebound in rival soyoil during the Asian morning session and a slightly weaker ringgit, a Kuala Lumpur-based trader said.
The ringgit FX_IDC:USDMYR, palm's currency of trade, weakened 0.24% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Soyoil prices on the Chicago Board of Trade (BOcv1) were down 0.66%. Dalian's most-active soyoil contract (DBYcv1) fell 0.32%, while its palm oil contract CME:CPO1! shed 0.59%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Crude Oil prices fell more than 1% as talks between Iran and the U.S. aimed at reaching a final agreement to end their war continued and the market awaited data from the U.S. regarding stock draws. O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Indonesia has set its July reference price for crude palm oil at $1,000.90 per ton, a trade ministry regulation showed.
The country will start its national B50 fuel mandate, a blend of 50% palm-based diesel and 50% conventional diesel, on Wednesday as part of its push for energy independence. But slumping oil prices and costlier palm oil threaten its viability, analysts say.
($1 = 4.0920 ringgit)