Palm dips, posts biggest weekly gain in over a month

KUALA LUMPUR: Malaysian palm oil futures pulled back on Friday, after a rally that helped the contract post a weekly gain of more than 4%, ahead of export data due over the weekend.

The contract posted its biggest weekly gain in six weeks, up 4.25%, supported by strength in rival oils and a forecast for slowing output.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slid 5 ringgit, or 0.11%, to 4,442 ringgit ($1,060.90) a tonne.

Palm tracked gains in rival Dalian oils earlier, but traders said the wobbly sentiment was likely due to expectations of lower Sept. 1-25 exports.

Palm oil ticks up for second day on higher demand hopes

"Given the very high palm oil prices, demand is expected to be in bits and pieces and buyers would wait for a reasonable downside correction to cover," Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group, said in a note.

Prices were also weighed by a softer price outlook from a top industry analyst at the Globoil India conference due to end on Saturday.

Analyst James Fry said at the conference that benchmark palm prices could moderate from near record levels to average slightly below 4,000 ringgit per tonne next year.

He also forecast a "gentle easing" of edible oil prices in the next to six to 12 months on improving supplies.

India's edible oil imports in September could jump as much as 59% from a year ago, as refiners raised purchases after the government slashed import duty ahead of key festivals, the head of an industry body said on Thursday.

Dalian's most-active soyoil contract rose 2.22%, while its palm oil contract was up 2.69%. The Chicago Board of Trade soyoil prices lost 0.47%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.