Malaysian palm oil futures rose on Friday, charting its first gain in four sessions, tracking strength in rival oilseed soya. The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 0.5 percent at 2,457 ringgit ($576.29) a tonne at the close of trade, its strongest daily gain in a week.
Palm however was down 1.6 percent on a weekly basis, a fourth consecutive weekly decline. Traded volumes stood at 47,020 lots of 25 tonnes each in the evening.
"The market is up today on US soyaoil and Dalian," said a futures trader from Kuala Lumpur, referring to overnight soyaoil on the Chicago Board of Trade, and gains in related oils on China's Dalian Commodity Exchange. "There's also some short-covering as we head towards the long weekend holiday." Malaysian markets will be closed on Monday for a public holiday.
Palm oil prices are typically affected by movements in soyaoil, as both vegetable oils compete for a share of the global edible oils market. Soyabean oil on the Chicago Board of Trade saw strong overnight gains of 1.6 percent, but was last down 0.4 percent. The September soyabean oil contract on the Dalian Commodity Exchange gained 1 percent. In other related oils, the September contract for palm olein was up 0.2 percent.
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