Palm oil rises on bargain hunting

JAKARTA, Aug 19 (Reuters): Malaysian palm oil futures recovered on Monday, paring some losses in the previous session on bargain hunting.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 40 ringgit, or 1.09 per cent, at 3,721 ringgit ($849.93) a metric ton at closing.

The contract lost 1.79 per cent last week, its fourth consecutive weekly drop.

"Palm oil futures are supported by bargain hunting after found support above 3,663 ringgit a ton but firm ringgit may limit upside," a Kuala Lumpur-based trader said.

Malaysian ringgit, the contract currency of trade, strengthened 1.09 per cent against the US dollar on Monday, its highest closing since mid-February 2023. A stronger ringgit made the contract less attractive for foreign currency holders.

Dalian's most-active soyoil contract lost 0.11 per cent, while its palm oil contract gained 0.66 per cent.Soyoil prices on the Chicago Board of Trade was down 0.33 per cent.