SINGAPORE: Malaysian palm oil rose for a third consecutive session on Friday, with strength in China’s edible oil market supporting prices, although lacklustre demand for the tropical product limited the upside potential in prices.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 15 ringgit, or 0.4%, to 3,777 ringgit a metric ton. “Robust performance of the Dalian market has contributed to the upward trend,” said Lingam Supramaniam, director with vegetable oil brokerage Pelindung Bestari in Kuala Lumpur.
“The demand is however subdued. While refiners are attempting to secure bids, potential buyers are currently holding out for more favourable prices than what is typically seen in the market.”
The active pace of the US harvest of soybeans added pressure on prices. Farmers had harvested three-quarters of their crop by Sunday, according to weekly data from the US Department of Agriculture. The figures, roughly in line with trade expectations, were ahead of the five-year average pace for each crop.