JAKARTA: Malaysian palm oil futures booked a third straight weekly rise on Friday as the market rebounded from a three-day slide, helped by overnight strength in Chicago soyoil and rival Dalian edible oils in Asian hours, while strong exports and marginal output growth added support.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 71 ringgit, or 1.59%, to 4,531 ringgit ($1,072.43) a metric ton at closing. The contract gained 1.32% for the week.
“Our production in August is kind of low. Preliminary numbers are pointing towards a growth of marginally 2-3% only and exports will remain robust for August and September,” said Parama-lingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Dalian’s most-active soyoil contract rose 0.64%, while its palm oil contract gained 0.4%. Soyoil on the Chicago Board of Trade eased 0.02% after surging 4.73% in the previous session.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Indian importers for the first time bought palm oil from Colombia and Guatemala as producers sitting on surplus stocks offered cargoes at steep discounts, four trade sources with direct knowledge of the matter said.
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