Palm rises on stronger rival oils, set to snap two-week losing streak
Malaysian palm oil futures rose on Friday, breaking a two-week losing streak. The October contract climbed 0.97% to RM4,281 per metric ton, supported by gains in rival Dalian and Chicago soyoil markets. A weaker ringgit also boosted exports. Traders watch RM4,312 resistance, with potential gains up to RM4,374.
KUALA LUMPUR: Malaysian palm oil futures opened higher on Friday, poised to snap a two week losing streak, buoyed by strength in rival Dalian palm and Chicago soyoil prices.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained RM41, or 0.97 per cent, to RM4,281 (US$1,011.58) a metric ton in early trade.
The contract has risen 0.92 per cent so far this week.
Dalian’s most-active soyoil contract fell 0.38 per cent, while its palm oil contract added 0.24 per cent. Soyoil prices on the Chicago Board of Trade were up 0.11 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices were little changed in early Asian hours, but were headed for their steepest weekly losses since late-June, as investors expressed concern over the impact to the global economy from tariffs that kicked into effect on Thursday.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.05 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Palm oil may retest resistance at RM4,312 per metric ton, a break above which could lead to a gain into RM4,344 to RM4,374 range, Reuters technical analyst Wang Tao said.
Japanese shares surged on Friday after positive earnings reports and expectations the US would remove overlapping tariffs on the country’s goods, while shares were down in other Asian markets after a late retreat on Wall Street during the previous session.
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Source : The Business Times
