Palm oil rises on export outlook; books weekly gain
Malaysian palm oil futures surged, with August delivery rising 2.15% to 4,079 ringgit per metric ton, marking a 5% weekly gain. Increased exports, up 22.1% in May, fueled optimism amidst rising sunflower oil prices. Dalian’s soyoil and palm oil contracts also saw gains. Oil prices held steady as investors await U.S. inflation data and Sunday’s OPEC+ meeting. Indonesia reduced its crude palm oil reference price for June, while the ringgit weakened slightly against the dollar.
KUALA LUMPUR, May 31 (Reuters) -Malaysian palm oil futures rose on Friday and logged a weekly gain, buoyed by estimates of higher exports in the world’s second-biggest producer.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange closed 86 ringgit, or 2.15%, higher at 4,079 ringgit ($867.13) per metric ton. The contract gained 5% for the week.
Expectations of a 20% increase in exports of Malaysian palm oil products in May have boosted prices, a Kuala Lumpur-based trader said.
“The recent surge in sunflower oil prices has also turned buyers to purchase palm as it is comparatively cheaper,” the trader said.
Cargo surveyor Intertek Testing Services said Malaysian palm oil exports for May rose 22.1% from the month before, while independent inspection company AmSpec Agri Malaysia estimated a 22.8% increase.
Another cargo surveyor, Societe Generale de Surveillance, estimated the exports at 1,161,370 metric tons, from 1,045,679 tons a month earlier, LSEG data showed on Friday.
Dalian’s most-active soyoil contract DBYcv1 rose 0.32%, while its palm oil contract DCPcv1 added 1.28%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.87%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Oil prices held steady on Friday as investors await U.S. inflation data for clues on the demand outlook before turning attention to Sunday’s OPEC+ meeting to determine the state of supply into next year.O/R
Brent LCOc1 futures gained up 14 cents, or 0.17%, by 0908 GMT to trade at $82.00 a barrel.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Indonesia set its crude palm oil reference price for June at $778.82 per metric ton, a trade ministry regulation showed, down from $877.28 in May.
The ringgit MYR=, palm’s currency of trade, weakened 0.04% against the dollar, making the commodity less expensive for buyers holding the foreign currency.
Source Link : https://www.xm.com/research/markets/allNews/reuters/palm-oil-rises-on-export-outlook-books-weekly-gain-53851019
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