JAKARTA: Malaysian palm oil futures closed higher on Friday and booked a second weekly gain, after data showed rising exports for the August 1-15 period.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 75 ringgit, or 1.7%, at 4,478 ringgit ($1,063.66) a metric ton at the close.
The futures gained 5.24% this week.
Exports of Malaysian palm oil products for August 1-15 rose 21.3%, according to AmSpec Agri Malaysia, while according to cargo surveyor Intertek Testing Services, they rose 16.5%.
Dalian’s most-active soyoil contract fell 0.19%while its palm oil contract gained 0.11%. Soyoil prices on the Chicago Board of Trade were up 0.33%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Indonesia will launch a broader crackdown on the illegal exploitation of natural resources after a survey found that palm plantations on 3.7 million hectares (14,300 square miles) were operating in violation of the law, President Prabowo Subianto said on Friday.
India’s July palm oil imports fall as soyoil jumps to 3-year high
India’s palm oil imports declined in July after cancellations of contracts, while soyoil shipments jumped to a three-year high, driven by competitive prices and the arrival of delayed June consignments, a leading trade body said.
Meanwhile, oil prices fell on Friday as traders awaited talks between U.S. President Donald Trump and Russian leader Vladimir Putin, which some expect could lead to an easing of sanctions imposed on Moscow over the Ukraine war.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, the palm’s currency of trade, weakened 0.17% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
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