SINGAPORE: Malaysian palm oil futures rose on Friday, buoyed by upbeat demand from top importer India and reduced stockpiles, but were set for a fourth weekly loss amid weaker export data.
Palm oil edges higher on bargain buying, low stockpile
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 18 ringgit, or 0.49%, at 3,714 ringgit ($835.55) a metric ton as of 0245 GMT.
It has lost 0.93% so far this week.
Fundamentals
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Exports of Malaysian palm oil products for Aug. 1-15 declined 22.3% from the previous month, data from independent inspection company AmSpec Agri Malaysia showed on Thursday.
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Cargo surveyor Intertek Testing Services said exports fell 20.2% during the same period.
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The pace of exports during the period was slower than a decline of 12.2%-17.7% for Aug. 1-10, according to data from the two firms.
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Malaysia’s end-July palm oil inventories decreased 5.35% from a month earlier to hit their lowest level in four months, the Malaysian Palm Oil Board said on Monday.
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The contract is getting some support from robust demand from India, the world’s largest palm oil importer, Phillip Nova commodity strategist Darren Lim said in a note.
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Dalian’s most-active soyoil contract added 0.33%, while its palm oil contract climbed 0.83%. Soyoil prices on the Chicago Board of Trade ticked up 0.08 after a four-day decline.
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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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The Malaysian ringgit, palm’s currency of trade, fell 0.38% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
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Oil prices edged lower in early Asian trading on Friday, but the market’s benchmarks were set for a second consecutive weekly gain after upbeat US economic data eased investor worries about a potential recession in the top oil consuming nation.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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