KUALA LUMPUR: Malaysian palm oil futures snapped a three-week losing streak to post a weekly gain on Friday, as short coverings provided support to the market, while concerns over weak demand from India weighed. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 4 ringgit, or 0.09percent, to 4,442 ringgit (USD1,056.11) a metric ton at the close.
The contract rose 1.05 percent this week. Crude palm oil prices traded higher driven by short coverings, a Kuala Lumpur-based trader said.
Meanwhile, India's palm oil imports in September fell to their lowest level in four months, as refiners replaced palm oil with cheaper soyoil, according to five dealers.
Soyoil prices on the Chicago Board of Trade were down 0.48 percent. The Dalian Commodity Exchange is closed from October 1 to 8 on account of public holidays.
Palm oil tracks rival edible oils' prices as it competes for a share of the global vegetable oils market. Oil prices were stable but remained on course for a weekly loss of about 7-8 percent after news of potential increases to OPEC+ supply. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.07percent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Indonesia's state palm oil company Agrinas Palma Nusantara plans to develop a biofuel production complex in the Papua region to produce biodiesel entirely from palm oil, a company director said in an interview with CNBC Indonesia.
The Indonesian trade ministry urged the European Union to adopt a World Trade Organization panel ruling to remove countervailing duties on Indonesian biodiesel imports.
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