Palm oil futures rise on demand hopes

MUMBAI, May 23 (Reuters): Malaysian palm oil futures rose on Thursday due to weakness in the Malaysian ringgit and expectations of improved demand as the tropical oil started trading at a discount to rival soft oils. The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 24 ringgit, or 0.62 per cent, at 3,892 ringgit ($827.73) a tonne. The drop in the Malaysian ringgit and a rise US soyoil futures provided support to the market, said a Mumbai-based trader. The Malaysian ringgit, palm's currency of trade, weakened 0.26 per cent against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders. US soybean oil futures were up 0.43 per cent on Thursday morning. "Palm oil exports had been falling since the oil was more expensive for buyers than soyoil and sunflower oil. However, now that it is trading at a discount, exports are likely to pick up," the trader said. Malaysian palm oil exports for May 1-20 fell between 8.3 per cent and 9.6 per cent from the month before, according to cargo surveyors.