JAKARTA: Malaysian palm oil futures rose on Friday and were set to post their first weekly gain in three weeks as strong export data supported the contract despite weakness in vegetable oils in the Chicago and Dalian commodity exchanges.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 6 ringgit or 0.16% to 3,862 ringgit ($905.30) a metric ton by the midday break. The contract has gained 1.26% for the week.
“Good export figure for May 1-15 period lent some support,” a Kuala Lumpur-based trader said. Exports of Malaysian palm oil products for May 1-15 estimated rose between 6.6% and 14.2%, according to independent inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services.
Dalian’s most-active soyoil contract was down 0.84%, while its palm oil contract for June delivery dropped 0.91%. Soyoil prices on the Chicago Board of Trade (CBOT) tumbled 1.7%. Palm oil tracks prices of rival edible oils as it competes for a share of the global vegetable oils market. Oil prices edged up on Friday following a sharp drop in the previous session, heading for a weekly gain of more than 1% as US-China trade optimism outweighed the prospects of Iranian supply returning to the market.
Palm oil may slide further into a range of 3,763 ringgit to 3,804 ringgit per metric ton, as it has broken support at 3,870 ringgit.
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