Palm prices rise for the fourth consecutive session as crude oil remains firm and the ringgit is soft.

Malaysian palm futures closed higher on Monday after reversing losses earlier in the day. Stronger crude oil prices, a weaker ringgit and Dalian oil's weakness capped the gains.

The benchmark palm-oil contract for September delivery at Bursa Malaysia's Derivatives exchange gained 7 ringgit or 0.17% to 4,125 Ringgit ($961.09) per metric ton.

The contract has been rising for four consecutive sessions.

A Kuala Lumpur-based dealer said that higher crude oil prices in the Asian hours had limited the drop on palm prices, despite a weaker Dalian palmolein.

The weaker ringgit has also supported the market, the trader said.

Dalian's palm oil contract, which is the most active contract in Dalian, fell by 0.33%. Chicago Board of Trade Soyoil gained 0.59%.

As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.

The price of oil has risen to its highest level since January, as supply fears were stoked by the United States joining Israel to attack Iran's nuclear sites.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

Palm's trade currency, the ringgit (dollar), has weakened by 0.99%, making it cheaper for buyers who hold foreign currencies.

(source: Reuters)