JAKARTA: Malaysian palm oil futures were little changed on Friday but were set for a second weekly gain, with traders awaiting export data for further cues.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 9 ringgit, or 0.2%, at 4,412 ringgit ($1,046.24) a metric ton by the midday break.
Futures have gained 3.69% so far this week.
“Futures are trading sideways, tracking Dalian palm oil, and we are waiting for export data for further guidance,” a Kuala Lumpur-based trader said. Dalian’s most-active soyoil contract fell 0.37%, while its palm oil contract declined 0.57%.
Soyoil prices on the Chicago Board of Trade were also down 0.17%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
India’s palm oil imports declined in July after cancellations of contracts, while soyoil shipments jumped to a three-year high, driven by competitive prices and the arrival of delayed June consignments, a leading trade body said.
Malaysia raised its September crude palm oil reference price, lifting the export duty rate to 10%, a circular on the Malaysian Palm Oil Board website showed on Wednesday.
Meanwhile, oil prices nudged higher on Friday to fresh one-week highs after US President Donald Trump warned of “consequences” if Russia blocked a Ukraine peace deal, injecting concerns about supply.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, the palm’s currency of trade, weakened 0.17% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm oil may retest resistance at 4,481 ringgit per metric ton, a break above which could lead to a gain to 4,570 ringgit, Reuters technical analyst Wang Tao said. Reuters