MUMBAI (Commoditiescontrol) - Malaysian palm oil futures rose in early trade on Thursday supported by a weaker ringgit but outlook seen fragile as demand continues to remain weak.
The most active May delivery crude palm oil on the Bursa Malaysia Derivatives Exchange gained 0.2 percent at 2,973 ringgit a tonne at the mid-day break.
Malaysian ringgit ringgit weakened 0.2 percent to 4.4540 per dollar by noon. A weaker ringgit usually makes palm oil cheaper for holders of foreign currencies and helps demand.
A Edible oil trader from Indore said market is up due to weakness in ringgit and positive export data for first half this month, which showed 1.4 percent rise in shipment from same period last month, based on data from Intertek Testing Services.
Palm oil prices have been trading at over four-year highs on tight supply, as effects of crop damaging El Nino last year and monsoon floods lowered output in January.
Production declined 13.4 percent for the full month of January, its sharpest drop in a year, according to data from industry regulator the Malaysian Palm Oil Board.
(By Commoditiescontrol Bureau; +91-22-40015516)