Palm oil rises for fourth session, logs weekly gain
Malaysian palm oil futures rose for the fourth consecutive session, closing 0.58% higher at 3,958 ringgit per metric ton. The weekly gain was 1.15%, with the market anticipating higher exports and lower stock levels in July. Export estimates for July 1-20 are expected on Saturday, with robust export numbers so far this month. The ringgit weakened against the dollar, making palm oil cheaper for foreign buyers, while Malaysia maintained its 8% August export tax for crude palm oil.
KUALA LUMPUR: Malaysian palm oil futures rose for a fourth straight session and booked a weekly gain on Friday, ahead of export estimates from the world’s second-biggest producer for July 1-20.
The Bursa Malaysia Derivatives Exchange’s benchmark palm oil contract for October delivery closed 23 ringgit or 0.58% higher at 3,958 ringgit ($844.82) a metric ton.
The contract gained 1.15% this week, after falling 3.14% last week.
The market is trying to gauge the upside potential in July’s production and the likely drop in stock levels due to higher exports, a Mumbai-based trader said.
“Palm oil export numbers have been quite robust so far this month,” the trader added.
Cargo surveyors are expected to release Malaysian palm oil export estimates for July 1-20 on Saturday.
Dalian’s most-active soyoil contract gained 0.84%, while its palm oil contract lost 0.33%. Soyoil prices on the Chicago Board of Trade were up 0.38%.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Meanwhile, oil prices were little changed on Friday as a strong dollar and concern over top oil importer China’s economy were countered by a tighter supply outlook.
Brent crude prices fell by 8 cents, or 0.1%, to $85.03 a barrel by 0938 GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.43% against the dollar, making the commodity less expensive for buyers holding foreign currencies.
Malaysia maintained its August export tax for crude palm oil at 8.0% and raised its reference price, a circular on the Malaysian Palm Oil Board website showed.
Source Link : https://www.brecorder.com/news/40313478
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