Palm falls on profit-taking, breaks four consecutive weekly gains
Malaysian palm oil futures fell for the week due to profit-taking, with the January contract closing at 4,257 ringgit ($989.54), down 2.14%. Initial support came from China’s economic data and stronger soyoil prices, but profit-taking dampened gains. Traders anticipate the 2025 budget and upcoming export data to support the market amid concerns over lower production.
KUALA LUMPUR: Malaysian palm oil futures booked a weekly loss on Friday due to profit-taking, though traders expect the Malaysian 2025 budget announcement and export data to support the market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 21 ringgit, or 0.49%, to 4,257 ringgit ($989.54) a metric ton at the close.
The contract declined 2.14% this week, breaking a four-week session of gains.
China’s third-quarter economic data, together with firmer overnight Chicago soyoil trading, provided initial support to the palm market, but profit-taking later dampened gains, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
“The government is expected to table its budget (for) 2025 today, in which traders are expecting more goodies for the palm oil sector. Lower production added with better-than-expected exports will also likely continue to provide support,” he said.
Cargo surveyors, Intertek Testing Services and AmSpec Agri Malaysia, will release their Oct. 1-20 export data on Sunday and Monday, respectively.
Dalian’s most-active soyoil contract fell 0.46%, while its palm oil contract shed 0.96%. Soyoil prices on the Chicago Board of Trade were down 0.45%.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Oil futures steadied on Friday after data showed a fall in crude and fuel inventories in the United States and the emergence of more fiscal stimulus to boost China’s economy, though prices were headed for their biggest weekly loss in more than a month.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.12% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Source Link : https://www.brecorder.com/news/40327819/palm-falls-on-profit-taking-breaks-four-consecutive-weekly-gains
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