Palm tick up on stronger soyoil; still set to snap two-week decline

KUALA LUMPUR: [Malaysian palm oil futures](https://palm oil) edged up on Friday and were still poised for their first weekly gain in three weeks, as strength in soyoil prices countered fears of rising stockpiles.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange climbed 5 ringgit, or 0.11%, to 4,666 ringgit ($1,141.95) a metric ton by the midday break.

The contract has gained 3.55% so far this week.

“Palm oil futures traded higher and remained supported by Thursday’s strong rebound and stronger soybean oil prices, although concerns over elevated inventories ahead of the upcoming Malaysian Palm Oil Board (MPOB) demand and supply report may limit further gains,“ said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

Malaysia’s palm oil inventories are expected to hit an all-time high in September, topping the December 2018 peak, as production soared to record volumes, outpacing sluggish export demand, a Reuters survey showed.

MPOB is expected to release its data on Monday. Dalian’s most-active soyoil contract rose 0.86%, while its palm oil contract added 1.07%.

Soyoil prices on the Chicago Board of Trade were up 0.21%.

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

Oil prices fell as Middle East supply concerns eased somewhat after US President Donald Trump said the country will not attack Iran before US midterm elections next month amid productive talks to end the war that has disrupted the market.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, strengthened 0.05% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.