Palm falls on profit-taking, still logs third straight weekly gain
- Dalian’s most-active soyoil contract rose 0.07%
KUALA LUMPUR: Malaysian palm oil futures slipped on Friday, pressured by profit-taking and the ringgit’s strength, but still logged a third consecutive weekly gain.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slid 23 ringgit, or 0.55%, to 4,174 ringgit ($1,042.72) a metric ton. The contract rose 2.5% this week.
Investors booked profits ahead of the weekend and a stronger ringgit snapped the recent rally, said a Kuala Lumpur-based trader.
The ringgit, palm’s currency of trade, strengthened 0.87% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Dalian’s most-active soyoil contract rose 0.07%, while its palm oil contract shed 0.04%. Soyoil prices on the Chicago Board of Trade gained 0.56%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices rebounded after U.S. President Donald Trump renewed threats against major Middle Eastern producer Iran, raising concerns of military action that could disrupt supplies.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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