JAKARTA: Malaysian benchmark palm oil futures were set for a weekly gain, even as the market struggled for direction on Friday as traders awaited production data from industry groups for further clues.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange had edged 0.05% lower to 4,256 ringgit ($951.70) by the midday break.
The contract has gained 4.62% so far this week.
Palm found some support in Aug. 1-25 export data from cargo surveyors, but market participants were waiting for production numbers from the Malaysian peninsular region, a trader in Kuala Lumpur said.
Palm oil neutral in 4,085-4,350 ringgit range
Production may have risen so far in August, the trader said, which may weigh on prices.
“Weekend profit-taking may kick in too,” the trader added. Cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri said on Thursday exports of Malaysian palm oil products for Aug. 1-25 rose between 4.9% and 10%, while Societe Generale de Surveillance reported a 0.1% fall.
In related oils, soyoil prices on the Chicago Board of Trade fell 0.18%, while Dalian’s soyoil contract lost 0.74% and its palm oil contract was down 0.51%.
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Palm oil is expected to test a support at 4,085 ringgit per tonne, a break below which may open the way towards 3,857 ringgit, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.