KUALA LUMPUR: Malaysian palm oil futures inched higher on Friday, and were on track for a weekly gain, as traders awaited further leads on output data.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 24 ringgit, or 0.63%, to 3,844 ringgit ($904.90) a metric ton at the midday break.
The contract has gained 1.13% so far this week.
The market is waiting for the Malaysian Palm Oil Association’s production data for May 1-20, which is due later in the day or early next week, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract rose 0.21%, while its palm oil contract shed 0.17%. Soyoil prices on the Chicago Board of Trade rose 1.36%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices slipped, weighed down by a stronger US dollar and the possibility that OPEC+ will further increase its crude oil output.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Malaysian palm oil extends losses
The ringgit, palm’s currency of trade, strengthened 0.56% against the US dollar, making the commodity more expensive for buyers holding foreign currencies.
Palm oil may test resistance of 3,883 ringgit per metric ton, a break above which could open the way toward 3,927 ringgit, Reuters technical analyst Wang Tao said.
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