Palm oil snaps 3-day losing streak to settle higher

KUALA LUMPUR, Aug 8 (Reuters): Malaysian palm oil futures edged higher on Thursday after a three-day losing streak, buoyed by stronger rival Dalian contracts, though weaker crude oil prices and a firmer ringgit currency capped the gains.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed 5ringgit, or 0.14 per cent higher, at 3,702 ringgit ($828.19) a metric ton.

The contract had closed near seven-month lows in the previous two sessions.

With a calmed dollar-ringgit volatility this week, gains in crude oil due to the renewed Middle East crisis, and Indonesia discussing increasing the biodiesel mandates, palm oil may find support around the 3,650 ringgit range, said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading firm.

Dalian's most-active soyoil contract rose 0.78 per cent,while its palm oil contract added 0.16 per cent. Soyoil prices on the Chicago Board of Trade were down 0.76 per cent.

Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.