JAKARTA: Malaysian palm oil futures closed up on Friday, snapping a five-session losing streak, on strength in rival oils.
However, the futures booked a 3.43% weekly loss, their lowest since Oct. 20.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 39 ringgit, or 1.05%, to 3,741 ringgit ($802.45) on the closing.
“Overnight strong gains in rival oils have prompted futures benchmark contract to open gap up, snapping five-day negative streak,” a Kuala Lumpur-based trader said.
Another trader said the market is expected to take profits before the weekend, while waiting for the Malaysian Palm Oil Board data scheduled to be published on Dec. 12.
Dalian’s most-active soyoil contract rose 2.33%, while its palm oil contract was up 3.41%. Soyoil prices on the Chicago Board of Trade gained 0.35%.
Palm oil falls for fifth straight day on weak rival oils, crude
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysian ringgit, the contract’s currency of trade, traded from flat to up about 0.5% against the U.S. dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Indonesia will continue its mandatory 35% biodiesel blending in 2024 and has allocated 13.41 million kilolitres of biodiesel for next year, slightly higher than the 13.15 million kilolitres allotted for 2023. Palm oil is used as feedstock to make biodiesel.
Palm oil on the European vegetable oils market rose on Thursday on the back of stronger CBOT soyoil futures and a weaker dollar. Asking prices for palm oil were between $10 and $30 a tonne higher.
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