KUALA LUMPUR: Malaysian palm oil futures climbed on Friday and are poised to snap a two-week losing streak, as traders anticipate stronger demand from key markets in August.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 42 ringgit, or 0.99%, to 4,282 ringgit ($1,011.58) a metric ton at the midday break. The contract has risen 0.92% so far this week.
Some demand looks to be returning in August for both crude palm oil and refined products, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari.
“Overall, I believe demand in August should be a bit higher than July,” he said.
Cargo surveyors are expected to release their August 1-10 export estimates on Monday.
Dalian’s most active soyoil contract fell 0.12%, while its palm oil contract added 0.65%. Soyoil prices on the Chicago Board of Trade were down 0.15%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices were little changed during early Asian hours, but were headed for their steepest weekly losses since late-June, as investors expressed concern over the impact to the global economy from tariffs that kicked into effect on Thursday.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.07% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Palm oil may retest resistance at 4,312 ringgit per metric ton, a break above which could lead to a gain into 4,344 ringgit to 4,374 ringgit range, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.