JAKARTA: Malaysian palm oil futures rose on Friday, tracking strength in rival vegetable oils in the Dalian market, although futures were on track for a weekly loss.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 50 ringgit, or 1.1%, at 4,607 ringgit ($1,122.84) per metric ton in early trade.
The futures has booked a 1.10% weekly loss so far.
Fundamentals
Dalian’s most-active soyoil contract rose 0.87% while its palm oil contract gained 1.3%. Soyoil prices on the Chicago Board of Trade fell 0.28% Palm oil tracks the price movements of rival edible oils,
as it competes for a share of the global vegetable oils market.
According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for June 1 to 25 rose 11.1%, while according to cargo surveyor Intertek Testing Services it rose 10.6%.
Meanwhile, Indonesia has issued a regulation to implement its B50 biodiesel mandate starting from July 1, with a three-month transition period for retailers to clear their existing stocks, a senior energy ministry official said on Thursday.
Oil prices fell on Friday morning and are heading for steep weekly losses amid easing supply concerns as more stranded oil tankers exited the Strait of Hormuz, even though a cargo vessel was hit near Oman on Thursday.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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