Palm rises but poised to snap three-week winning streak
KUALA LUMPUR: Malaysian palm oil futures rose on Friday, supported by firmer soyoil prices and worries over future output, though the contract remained on track to snap a three-week winning streak. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 43 ringgit, or 0.89%, at 4,859 ringgit ($1,206.61) a metric ton by the midday break. The contract…
KUALA LUMPUR: Malaysian palm oil futures climbed on Friday, buoyed by higher soyoil prices and apprehensions about potential output, although the contract was set to break a three-week winning streak. The November November palm oil contract on Bursa Malaysia Derivatives Exchange gained 43 ringgit, or 0.89%, to 4,859 ringgit ($1,206.61) per metric ton by noon.
The contract has slipped 3.41% this week. Palm oil mirrored gains in the soybean oil market, and output worries for the medium term were expected to boost market sentiment, according to David Ng, a trader at Iceberg X Sdn Bhd. "We view prices supported above 4,800 ringgit with resistance at 4,950 ringgit," he stated. Dalian’s most-active soyoil contract climbed 1.27%, while its palm oil contract jumped 0.49%.
Soy oil prices on the Chicago Board of Trade were up 2.31%. Palm oil mirrors the price movements of other edible oils, as it competes for a slice of the global vegetable oils market. Falling oil prices were expected to end a two-week winning streak, despite finishing higher the prior day after a report that US President Donald Trump was not interested in reverting to prior deal terms with Iran.
Weaker crude oil futures made palm oil a less appealing choice for biodiesel feedstock. The ringgit, palm oil's trade currency, strengthened 0.1% versus the dollar, making the commodity slightly pricier for foreign currency holders.
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