NEW DELHI: Malaysian palm oil futures rose on Friday, in line with rival soyoil, to reverse losses in the previous two sessions.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 26 ringgit, or 0.63%, to 4,162 ringgit ($880) a metric ton in morning trade.
Indonesia to double palm replanting subsidy starting May
Palm oil futures closed lower on Wednesday, falling for a second straight session. Malaysia’s financial markets were closed on Thursday for a public holiday.
Fundamentals
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Soyoil prices on the Chicago Board of Trade rose 0.95%.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Oil prices jumped more than $1 a barrel on Thursday, closing out the month higher on the prospect of OPEC+ staying the course on production cuts, ongoing attacks on Russia’s energy infrastructure and a falling US rig count tightening crude supplies.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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Indonesia aims to double subsidies for palm oil replanting to 60 million rupiah ($3,785.49) per hectare from May to boost farmers’ participation, Chief Economic Minister Airlangga Hartarto said on Thursday.
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Indonesia’s January palm oil exports, including refined products, stood at 2.8 million metric tons, down from 2.95 million tons in the same month last year, data from the Indonesian Palm Oil Association (GAPKI) showed on Thursday.
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Production of crude palm oil and kernel oil rose to 4.63 million tons from 4.26 million tons, the data showed.
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