Palm oil futures up on soyoil; ringgit weighs
KUALA LUMPUR, April 7 (Reuters) - Malaysian palm oil futures ended higher on the back of firmer soyoil markets although the surging ringgit currency nipped gains.
"It's a war out there. Plantation firms are taking up positions because a stronger ringgit means better returns for their crude palm oil sales to refiners," said a trader with a foreign commodities broker.
"It's a war out there. Plantation firms are taking up positions because a stronger ringgit means better returns for their crude palm oil sales to refiners," said a trader with a foreign commodities broker.
"Refiners are losing their margins because the crude palm oil raw material is too expensive. The dollar is weaker as well, so they are staying away or closing positions,"the trader added.
By the midday break, the benchmark June crude palm oil contract on Bursa Malaysia Derivatives Exchange was up 16 ringgit. or 0.6 percent, at 2,536 ringgit ($789.5). Traded volume stood at 5,728 lots of 25 tonnes each.
The ringgit rose 0.6 percent to 3.1930 per dollar, eating into refiners' margins as crude palm oil feedstock for refined products is priced in the Malaysian currency.
The market is also watching for cues from Malaysia's palm oil exports, production and stocks due to be released over the weekend and on Monday. Reuters will issue a poll for March palm oil stocks, production and exports on Thursday.
Vegetable oil traders were also tracking developments from a brewing trade dispute between China and Argentina.
A China Ministry of Commerce source has refuted claims it was curbing soybean oil shipments from Argentina, saying new quality standards were for consumer safety, the China Daily reported on Wednesday.
Oil was choppy, trading near 18th month highs around $87 and giving support to U.S. soyoil futures. China's Dalian Commodities Exchange rose 1.2 percent.
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