JAKARTA: Malaysian palm oil futures rebounded on Friday and snapped three sessions of losses, supported by a recovery in soybean oil and a weaker ringgit, although the contract is expected to post a weekly drop.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange jumped 2.75% to 3,660 ringgit ($783.22) per metric ton in early trade. The contract has lost 2.16% in the week.
Palm extends losses over soybean oil and lower US biofuel mandate
Fundamentals
Malaysia’s ringgit, the contract currency of trade, weakened to hit its lowest level since November 11, 2022 in early trade. A weaker ringgit made the contract more attractive to foreign currency holders.
Soyoil prices on the Chicago Board of Trade were up 0.55%. The Dalian Commodity was closed for the Dragon Boat Festival holidays.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia has maintained its July export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Wednesday.
Malaysian palm oil products exports for June 1-20 fell 16.8% from the same period in May, cargo surveyor Intertek Testing Services said. Cargo surveyor AmSpec Agri Malaysia said exports fell 12.9%.
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