KUALA LUMPUR: Malaysian palm oil futures edged higher on Friday, underpinned by a forecast for a decline in July production, although the contract was set for its first weekly loss in seven.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 30 ringgit, or 0.71%, to 4,247 ringgit ($1,007.59) a tonne during early trade.
Palm has declined around 3% for the week so far.
Malaysia’s palm oil stockpile at the end of July likely expanded to its highest in 10 months, even as production is seen shrinking by 4%, a Reuters survey showed on Thursday.
The Malaysian Palm Oil Board will release the official data on Aug. 11. Dalian’s most-active soyoil contract rose 0.3%, while its palm oil contract fell 0.6%. Soyoil prices on the Chicago Board of Trade were down 0.2%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may break a support at 4,197 ringgit per tonne and fall to the next support at 4,105 ringgit, Reuters technical analyst Wang Tao said.
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