Palm gains on firm crude but logs weekly decline
Malaysian palm oil prices rise for 2nd day, tracking firm crude oil prices. Weekly loss recorded. Lack of demand, rising supplies expected to constrain prices. Dalian’s soyoil and palm oil contracts up, but down for week. CBOT soyoil prices fall. Market eyes MPOB’s monthly data on June 10. Reuters poll projects rise in palm oil inventories and exports. India’s palm oil imports increase in May.
Singapore, June 7 (Reuters) -Malaysian palm oil rose for a second consecutive session on Friday, tracking firm crude oil prices, although the market logged a weekly loss.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange closed 0.4% higher at 3,976 ringgit ($848.12) per metric ton. The contract has lost over 2%this week.
A lack of demand and rising supplies are likely to keep a lid on prices, said a Kuala Lumpur-based trader.
“This 3,800-4,000 ringgit trading range will continue unless we see really good demand.”
Dalian’s most-active soyoil contract DBYcv1 gained 1.8%,while its palm oil contract DCPcv1 rose 2%. Both contracts were also down for the week.
Meanwhile, soyoil prices on the Chicago Board of Trade BOcv1 fell 0.5%.
Palm oil prices are influenced by the movements of related oils as they vie for a portion of the global vegetable oils market.
Oil prices were little changed after rising in the previous session as reassurances from OPEC+ members Saudi Arabia and Russia indicated readiness to pause or reverse output agreements. O/R
Higher crude oil futures make palm a more attractive option for biodiesel feedstock.
The market spotlight is on the Malaysian Palm Oil Board’s (MPOB) monthly data due on June 10. According to a Reuters poll, palm oil inventories by the end of May were seen at 1.75 million metric tons, up 0.39% from April.
The poll projected exports of palm oil products to have surged by 14.32% in the same period to 1.41 million tons.
India’s palm oil imports rose by 12.4% in May on a monthly basis, five dealers told Reuters. India is the world’s biggest importer of vegetable oils.
Source Link: https://www.xm.com/research/markets/allNews/reuters/palm-gains-on-firmer-crude-set-for-weekly-decline-53855733
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