Palm logs weekly loss, snaps three-week winning streak
- Dalian’s most-active soyoil contract rose 1.67%
KUALA LUMPUR: Malaysian palm oil futures rose more than 1% on Friday, lifted by firmer soyoil prices and worries over future output, but still logged a weekly loss to end its three-week winning streak.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 74 ringgit, or 1.54%, at 4,890 ringgit ($1,206.61) a metric ton at the close. The contract declined 2.55% this week.
Palm tracked gains in the soybean oil market and production concerns over the medium term are seen lifting market sentiment, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
“We see prices supported above 4,800 ringgit and resistance at 4,950 ringgit,” he said.
Dalian’s most-active soyoil contract rose 1.67%, while its palm oil contract added 1.1%. Soyoil prices on the Chicago Board of Trade were up 2.13%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices held steady but were on track for a weekly drop as traders weighed stagnant U.S.-Iran diplomatic talks against some crude flows through the Strait of Hormuz.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.2% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
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