JAKARTA: Malaysian palm oil futures reversed earlier losses but booked a second consecutive weekly loss on Friday as it looked for new directions after the release of monthly exports data.
The benchmark June palm oil contract on the Bursa Malaysia Derivatives Exchange gained 14 ringgit, or 0.33%, to 4,214 ringgit ($953.39) a metric ton at the close.
The contract fell 2.63% for the week. “The futures is consolidating after recent drops before plotting a new direction based on this month’s exports and production data,” a Kuala Lumpur-based trader said.
Malaysia’s palm oil stocks posted their first rise in six months in March, as production recovered and imports rose sharply, offsetting strong festive demand, data from the industry regulator showed on Thursday. The stocks at the end of March rose 3.52% from the previous month to 1.56 million metric tons.
Independent inspection company AmSpec Agri Malaysia said exports of Malaysian palm oil products for April 1 - 10 rose 52.8% to 301,113 metric tons, while according to cargo surveyor Intertek Testing Services it rose 29.3% to 323,160 metric tons. India’s palm oil imports in March rose about 14% from the previous month to 424,599 metric tons, a trade body said on Friday.
Dalian’s most-active soyoil contract added 0.84%, while its palm oil contract gained 0.69%. Soyoil prices on the Chicago Board of Trade (CBOT) rose 1.4%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market. The ringgit, palm’s currency of trade, strengthened 1.03% against the US dollar, making the commodity more expensive for buyers holding foreign currencies.
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