Palm oil tracks rival oils higher, set for more than 3% weekly gain
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SINGAPORE: Malaysian palm oil futures rose on Friday amid higher edibleand crude oil prices, and are headed for a more than 3% weekly gain.
The benchmark palm oil contract for May delivery on the Bursa Malaysia DerivativesExchange rose 48 ringgit, or 1.18% to 4,119 ringgit ($878.63) a metric ton in morningtrade, the highest intraday price reached since July 27.
It had gained 0.27% during overnight trade.
Malaysian palm oil futures rise:
The contract is set for a weekly gain of around 3.6%, fuelled by tight supply andoptimism over palm demand.
Fundamentals
- Dalian’s most-active soyoil contract rose 1.33%, while its palm oil contract gained0.96%. Soyoil prices on the Chicago Board of Trade increased 0.78%.
- Palm oil is affected by price movements in related oils as they compete for a share inthe global vegetable oils market.
- Oil prices rose on Friday, driven by growing demand in the United States andChina, the world’s biggest oil consumers, and as the US Federal Reserve gave apositive signal on possibility of rate cuts.
- Stronger crude oil futures make palm a more attractive option for biodieselfeedstock.
- The Malaysian ringgit, palm’s currency of trade, strengthened 0.32% against thedollar. It rose as much as 0.6% earlier in the session, the highest since Jan. 16.
- Palm oil may break resistance at 4,106 ringgit and climb into a range of 4,106-4,158ringgit per metric ton, said Reuters technical analyst Wang Tao
Source Link: https://www.brecorder.com/news/amp/40292629
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