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Palm oil sees gains

KUALA LUMPUR: Malaysianpalmoilfutures rose for a second consecutive session on Wednesday after closely watched output and export data released during the midday break supported bullish sentiment.

The market was also helped by a weaker ringgit, palm`s traded currency, as this makes it cheaper for foreign buyers. The ringgit fel10.2 per cent against the dollar.

Benchmark palm oil futures for February delivery on the Bursa Malaysia Derivatives Exchange were up 0.9pc at 3,125 ringgit ($703) a tonne at the end of the trading day.

Earlier, they hit 3,141 ringgit, their strongest since Dec 7. Traded volumes stood at 42,900 lots of 25 tonnes each, slightly below the 2015 average of 44,600 lots traded in a day.

`The market is up on the ringgit, which weakened against the U.S. dollar, said one futures trader from Kuala Lumpur.

Data from the Malaysian Palm Oil Board (MPOB) also supported palm, another trader said, who said the market was expecting inventory levels to be higher than recorded.

`Physical prices also look strong, indicating some (supply) tightness in the market,` he said.-Reuters