JAKARTA: Malaysian palm oil futures gained on Friday on concerns over weak output, although they posted a second straight week of losses due to expectations of sluggish exports.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 0.81% to close at 5,580 ringgit ($1,332.38) per tonne, after falling 1.1% a day earlier.
It lost 0.66% for the week.
Palm prices on Friday were supported by expectations of lower production and stockpiles in February, a trader in Kuala Lumpur said. However, the forecast for weak demand this month capped gains, the trader added.
Malaysian palm oil products exports in Feb. 1-10 fell between 5% and 6.5% from the same period last month, according to cargo surveyor Societe Generale de Surveillance and Intertek Testing Services. Meanwhile, independent inspection company AmSpec Agri Malaysia said exports rose 0.5%.
Meanwhile, Malaysia’s palm oil inventories dropped more than anticipated at the end of January, hitting a six-month low as production and imports slumped, data from the industry regulator showed on Thursday.
On the Dalian commodity exchange, its most-active soyoil contract fell 1.3%, while the palm oil contract for May delivery was down 0.48%. Soyoil prices on the Chicago Board of Trade rose 0.68%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil looks neutral in a range of 5,528-5,608 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.