Malaysian palm oil futures recovered in late trade on Friday on forecasts of stronger export data and short-covering ahead of the weekend. Benchmark palm oil futures for May on the Bursa Malaysia Derivatives Exchange rose 0.9 percent to 2,806 ringgit ($632.41) a tonne at the end of the trading day. However, the second daily gain this week could not prevent a second weekly decline, with the market down by 1.8 percent since February 20, unable to shake off concerns over rising output.
Traded volumes stood at 68,348 lots of 25 tonnes each on Friday evening. Palm oil shipments could see improvements during the February 1-25 period from a month ago, traders said ahead of the release of data from cargo surveyors. Intertek Testing Services, which reported a 0.8 percent fall in exports for the February 1-20 period, is expected to release its latest data on Saturday.
Societe Generale de Surveillance, however, reported a 1.7 percent rise in shipments in the same period and is expected to release its data on Monday. Palm oil could bounce to a resistance level of 2,827 ringgit a tonne, having found support at 2,750 ringgit, said a Reuters market analyst for commodities and energy technicals. In related vegetable oils, soyabean oil on the Chicago Board of Trade was up 0.7 percent on Friday, while the soyabean oil contract on China's Dalian Commodity Exchange declined 0.4 percent. The May contract for palm olein on the Dalian exchange fell by 0.3 percent.
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