JAKARTA: Malaysian palm oil futures rose slightly higher on midday break Friday due to El Nino worries and slow global demand.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 31 ringgit, or 0.77%, to 4,041 ringgit ($871.09) per metric ton during the midday break.
The contract rose for three consecutive months in August by gaining 3.4%. It was also set to post a third weekly gain, having risen 1.19% for the week.
“The markets have moved over the 4,000 ringgit range mainly on the concerns of El Nino patterns building up in coming months. However, global demand remains slow due to macroeconomic scenarios and China concerns,” Sandeep Singh, director of a Kuala Lumpur-based consulting and trading, Farm Trade, said.
Dalian’s most-active soyoil contract climbed up 0.12%, while its palm oil contract rose 0.53%. Soyoil prices on the Chicago Board of Trade also rose 0.74%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Indonesia has set its crude palm oil reference price for the September 1-15 period at $805.20 per metric ton, which put the CPO export tax and levy at $33 per ton and $85 per ton, respectively for the period.
Exports of Malaysian palm oil products for August fell 3% to 1,201,488 tons from 1,238,438 tons shipped during July, cargo surveyor Intertek Testing Services said.
Palm oil FCPOc3 may break a resistance at 3,963 ringgit per metric ton and rise into the 4,017-4,050 ringgit range, according to Reuters analyst, Wang Tao.
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