KUALA LUMPUR: Malaysian palm oil futures opened lower on Friday, tracking weakness in Chicago soyoil, and set for a fourth consecutive week of losses.
Palm oil rallies following surge in India’s April imports
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 20 ringgit, or 0.52%, to 3,826 ringgit ($808.37) per metric ton during early trade. The contract has so far lost 1.8% this week.
Fundamentals
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Soyoil prices on the Chicago Board of Trade were down 0.79%. The Dalian Commodity Exchange is closed until May 5 for International Labour day holidays.
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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 edged up in early trade on Friday on the prospect of OPEC+ continuing output cuts, but the crude benchmarks were headed for weekly losses on US economic uncertainty and limited crude supply disruptions caused by the Israel-Hamas war.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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Palm oil imports in India, the world’s biggest importer of vegetable oils, jumped 41% in April from the previous month to the highest level in three months as easing prices prompted refiners to increase purchases, five dealers told Reuters.
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ringgit, palm’s currency of trade, strengthened 0.4% against the dollar, making the commodity more expensive for buyers holding the foreign currency.
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Palm oil may rise into a range of 3,899 ringgit to 3,926 ringgit per metric ton, as it has managed to stabilise around support at 3,812 ringgit, Reuters technical analyst Wang Tao said.
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