Palm oil posts over 3% weekly gains

Malaysian palm oil futures experienced an increase of over 3% in a week, driven by bargain hunting and robust export demand, according to the Bursa Malaysia Derivatives Exchange. The benchmark palm oil contract for January delivery rose 0.93%, closing at 4,769 ringgit ($1,169.16) per metric ton. Weekly gains for the futures reached 3.85%.

India's palm oil imports in September surged to a seven-month high, as refiners opted for it over sunflower oil. Anilkumar Bagani, research head at Sunvin Group, attributed the rise in CPO futures to "some bargain buying" and stronger Malaysian exports during the first half of October. Cargo surveys revealed that Malaysian palm oil shipments between October 1 and 15 increased by 43.2% to 58.3% compared to the previous month.

However, Dalian's soyoil contract saw a decline of 0.86%, while its palm oil contract fell by 0.96%. The Singapore-based palm oil market is influenced by the performance of other edible oils, with the ringgit, the commodity's trading currency, depreciating slightly against the US dollar. Malaysia reduced the November crude palm oil reference price while maintaining the export duty at 10%, as reported by the Malaysian Palm Oil Board.

Palm oil prices are also affected by crude oil prices, as it serves as a biodiesel feedstock. Weaker crude oil futures on Friday, coupled with uncertainty about Middle East supplies and a larger-than-expected drawdown in US crude stockpiles, contributed to the downward pressure on palm oil prices.