KUALA LUMPUR: Malaysian palm oil futures were rangebound on Friday, but remained set for a second straight weekly gain, as traders awaited a crucial demand and supply data for further cues, while Indonesia’s biodiesel plans supported prices.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange shed 10 ringgit, or 0.22%, to 4,581 ringgit ($1,085.55) a metric ton by the midday break.
The contract has risen 3.44% so far this week.
The market is expecting a bearish Malaysian Palm Oil Board (MPOB) report that is due to be released soon, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
However, Indonesia’s B50 biodiesel plans was supporting prices, Ng added.
On Thursday, Indonesia said it will implement its B50 biodiesel programme in the second half of 2026.
The plan could eliminate the country’s need to import any diesel next year. Indonesia said it will need 5.3 million tons of additional crude palm oil to implement its mandatory B50 biodiesel plan in 2026.
Dalian’s most-active soyoil contract rose 0.55%, while its palm oil contract advanced 0.55%. Soyoil prices on the Chicago Board of Trade fell 0.14%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices were little changed in early Asian trade after falling more than 1% on Thursday, as the market’s war risk premium faded after Israel and Hamas agreed to the first phase of a plan to end the war in Gaza.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.14% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Comments
Comments are closed for this article.