Palm heads for weekly gain as market recoups losses on tight supply hopes
- Prices of rival soybeans rose to their highest in nearly a month on Thursday after the US Department of Agriculture's planting intentions report pegged soybean acreage well below expectations.
KUALA LUMPUR: Malaysian palm oil futures recouped early losses on Friday, putting them on track for their first weekly rise in three, as improving demand added to expectations of sustained tight supply.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 3 ringgit, or 0.08%, to 3,744 ringgit ($905.00) a tonne, after declining as much as 1.8% earlier in the day. For the week, it was up 1.4%.
Better March exports and positive sentiment from the US planting intentions report are supporting prices, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Palm oil exports from Malaysia, the world's second-largest exporter, rose about 27% in March from a month earlier, cargo surveyors said on Wednesday.
"Overall, the market is anticipating April exports to be a tad better versus March. With tight end-stocks and better-than-expected exports, prices are expected to remain firmer," he added.
Prices of rival soybeans rose to their highest in nearly a month on Thursday after the US Department of Agriculture's planting intentions report pegged soybean acreage well below expectations.
Dalian's most-active soyoil contract gained 1.7%, while its palm oil contract rose 1.4%. US markets were closed for a public holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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