Palm logs weekly loss, snaps three-week winning streak
KUALA LUMPUR: Malaysian palm oil futures rose more than 1% on Friday, lifted by firmer soyoil prices and worries over future output, but still logged a weekly loss to end its three-week winning streak. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 74 ringgit, or 1.54%, at 4,890 ringgit ($1,206.61) a metric ton at the close. The contract…
Malaysian palm oil futures climbed over 1% on Friday, buoyed by increasing soyoil prices and concerns over future output, but concluded the week with a loss, marking the end of a three-week winning streak. The November delivery contract for palm oil on the Bursa Malaysia Derivatives Exchange climbed 74 ringgit, or 1.54%, to 4,890 ringgit ($1,206.61) per metric ton at the close.
It experienced a decline of 2.55% this week. Analyst David Ng, from trading firm Iceberg X Sdn Bhd, noted that palm oil benefited from gains in the soybean oil market, and anticipated medium-term production concerns would bolster market sentiment. Ng believed prices would remain above 4,800 ringgit, with resistance at 4,950 ringgit.
Dalian's most active soyoil contract also rose 1.67%, while its palm oil contract increased 1.1%. Soyoil prices on the Chicago Board of Trade rose 2.13%. Palm oil mirrors price movements of other edible oils, competing for a share of the global vegetable oils market. Oil prices stabilized, but were set for a weekly decline as traders weighed stagnant U.S.-Iran diplomatic talks and limited crude oil flows through the Strait of Hormuz.
Weaker crude oil futures made palm oil a less appealing choice for biodiesel feedstock. The ringgit, palm's trading currency, strengthened 0.2% against the dollar, making the commodity slightly more expensive for buyers using foreign currencies.
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