(Updates with closing prices)
By Carman Chew
SINGAPORE, April 18 (Reuters) - Malaysian palm oil
futures ended more than 4% higher on Tuesday, the biggest daily
gain since December, tracking strength in related edible oils
amid threats to the Black Sea grain corridor deal, while a
weaker Malaysian ringgit lent some support.
The benchmark palm oil contract for July delivery
on the Bursa Malaysia Derivatives Exchange snapped four days of
losses, climbing 149 ringgit, or 4.1%, to 3,787 ringgit
($854.47) a tonne.
The contract surged following a rise in global vegetable
oil markets overnight, triggered by concerns that the Black Sea
Grain corridor deal might not extend beyond May 18, said
Anilkumar Bagani, research head of Mumbai-based vegetable oils
broker Sunvin Group.
"The destination demand is still fragile for palm oil due to
its tight spread over the competition and even the core palm oil
demand is cautious due to high volatility in prices," Bagani
added.
Indonesia had stocks of 2.64 million tonnes at the end of
February, down 14.84% from a month earlier.
Malaysia maintained its export tax for crude palm oil at 8%
for May and raised its reference price, a circular on the
Malaysian Palm Oil Board website showed on Monday.
Dalian's most-active soyoil contract rose 2.1%,
while its palm oil contract strengthened 3.4%. Soyoil
prices on the Chicago Board of Trade were up 1.2%.
Palm oil is affected by price movements in related oils as
they compete for a share in the global vegetable oils market.
The Malaysian ringgit , palm's currency of trade,
weakened 0.29% against the dollar. A weaker ringgit makes palm
oil more attractive for foreign currency holders.
Palm oil may retest a support at 3,577 ringgit per
tonne, a break below which could cause a fall to 3,520 ringgit,
said Reuters technical analyst Wang Tao said. ($1 = 4.4320 ringgit)
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(Reporting by Carman Chew; Editing by Devika Syamnath)
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