Malaysian palm oil firms on stronger Dalian, set for second straight weekly gain

JAKARTA: Malaysian palm oil futures rose on Friday, tracking stronger rival edible oils at the Dalian market, and were on track for their second straight weekly gain.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 15 ringgit, or 0.33percent, to 4,552 ringgit (USD1,148.62) a metric ton by the midday break.

The futures have booked 1.47percent gains so far this week. “Today’s trade is expected to be externally driven, mainly by Dalian and soyoil, coupled with an upwards bias due to the upcoming long holidays,” said a Kuala Lumpur-based trader.

The futures will be closed on June 1-2, and trading will resume on Wednesday, June 3. Dalian’s most-active soyoil contract rose 0.68percent, while its palm oil contract added 0.24percent. Soyoil prices on the Chicago Board of Trade were down 0.18percent.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

The Indonesian government met with palm oil farmer groups on Friday to address concerns about a steep decline in the prices of fresh fruit bunches, which farmers say was caused by uncertainties about a new plan to funnel all palm oil exports through a state agency.