JAKARTA: Malaysian palm oil futures extended gains on Friday, snapping a four-session losing streak on strength in rival vegetable oils, but remained headed for a third straight weekly decline.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 4 ringgit, or 0.1%, to 4,015 ringgit ($911.46) a metric ton by the midday break.
The futures have lost 4.68% so far this week.
“The futures seem to be consolidating and trading in the range of 4000 to 4080 ringgit while waiting for new lead in the market,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract was up 0.03%, while its palm oil contract gained 0.05%.
Soyoil prices on the Chicago Board of Trade (CBOT) rose 0.67%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Malaysia maintained its May export tax for crude palm oil at 10% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Tuesday.
Exports of Malaysian palm oil products for April 1-15 are estimated to have risen between 13.6% and 17% from a month ago, said cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
The Malaysian ringgit, the contract currency of trade, largely traded flat against the US dollar.
A weaker ringgit makes the contract more attractive for foreign currency holders.