Palm rises nearly 1pc in early trade on stronger related oils

Madiha Shakeel August 16, 2019

KUALA LUMPUR: Malaysian palm oil futures rose by nearly 1% at the open of trade on Friday, lifted by stronger gains in related edible oils.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was last up 0.8% at 2,218 ringgit ($529.86) per tonne, in line to chart an eighth day of gains in nine.

In other related edible oils, U.S. soyoil futures on the CBOT gained 1.3%, while the September soyoil contract on the Dalian exchange rose 1.7%.

FUNDAMENTALS

* Indonesia has sealed parts of palm oil and timber concessions owned by 10 companies on Borneo island after a spate of forest fires, authorities said on Thursday, warning those involved in forest burning would be severely punished.

* Chicago corn futures ticked higher on Friday but the market is set for its biggest weekly drop in three years, driven down by expectations of a bigger U.S. crop.

* Crude oil prices rose on Friday after two days of declines, buoyed following data showing a rise in U.S. retail sales helped ease some concerns about a recession in the world’s biggest economy.

MARKET NEWS

* Asian shares were heading for weekly losses on Friday as conflicting messages on the Sino-U.S. trade war only added to worries for the global economy, while talk of aggressive central bank stimulus drove bond yields to fresh lows.

* The S&P 500 and the Dow gained ground in a late rally on Thursday as upbeat retail sales data offset recessionary fears amid the simmering U.S.-China trade tensions.

* The dollar held onto gains on Friday after a surge in U.S. retail sales eased concerns about the world’s top economy, but traders cautioned against reading too much into one piece of data given the growing risks to the outlook.

Copyright Reuters, 2019

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