KUALA LUMPUR: Malaysian palm futures rose to their highest in one-and-a-half weeks on Friday, tracking rival oils, setting the commodity up for a fourth straight session of gains.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange climbed 3.17% to 4,620 ringgit ($1,100.52) at the midday break. It reached the highest since Dec. 15 and marked the largest intraday rise since Dec. 7.
Palm has gained 4.8% this week, the biggest since Oct. 8. The futures contract rose 0.6% in overnight trade.
Palm futures have been rising this week amid expectations of a softer December output due to harvest disruptions after the weekend’s floods affecting eight states in Malaysia.
Dalian’s soyoil contract for May delivery rose 1.92%, while its palm oil contract gained 2.56%.
Soybean oil prices on the Chicago Board of Trade for May delivery were last up 1.17%. CBOT is closed on Friday ahead of Christmas.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm futures are expected to climb higher mirroring gains in rival oils on Dalian while the US market is on holiday, traders in Kuala Lumpur said.
Prices may advance but weekend profit-taking interest could limit the upside momentum, a trader said.
Palm oil may break a resistance at 4,519 ringgit per tonne and rise into 4,555-4,625 ringgit range, Reuters technical analyst Wang Tao said.
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