Palm oil rises 1%, but set for biggest weekly drop in nearly four months
- CBOT soybeans are on track for their fifth weekly gain as the US government's forecast of tightening global supplies supported prices.
KUALA LUMPUR: Malaysian palm oil futures jumped on Friday, pulling back after a sharp four-day decline, on overnight gains in rival soyoil but the contract is still poised to fall 7% for the week, its largest decline in nearly four months.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 43 ringgit, or 1.22%, to 3,570 ringgit ($884.54) a tonne during early trade.
Palm is set to end a four-week rally after plunging 4.5% in the previous session due to apprehensions of Malaysia's exports falling 40% during Jan. 1 to 15 month-on-month.
Cargo surveyors are scheduled to release export data today.
FUNDAMENTALS
Dalian's most-active soyoil contract fell 0.2%, while its palm oil contract slipped 0.7%. Soyoil prices on the Chicago Board of Trade were down 0.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
CBOT soybeans are on track for their fifth weekly gain as the US government's forecast of tightening global supplies supported prices.
- Anti-palm oil campaigns are hindering the industry's efforts to achieve sustainability certification and develop a market for certified sustainable palm oil, top palm oil producers said during the Reuters Next conference on Thursday.
Palm oil may bounce moderately into a range of 3,592-3,631 ringgit per tonne, before falling again, Reuters technical analyst Wang Tao said.
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