Palm set for weekly gain amid anticipation of major conference inputs
JAKARTA, March 1 (Reuters) -Malaysian palm oil futures traded up on Friday, and were set for a weekly gain, tracking strength in rival vegetable oils, and anticipating new inputs from a major industry conference due to be held in Kuala Lumpur next week.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange was up 5 ringgit, or 0.13%, at 3,975 ringgit ($839.32) per metric ton by the midday break. The futures have gained 3.17%so far this week.
“Palm is tracking external strength on Dalian and Chicago soyoil, while anticipating new inputs from the Price Outlook Conference and Exhibition (POC) next week,” a Kuala Lumpur-based trader said.
The soyoil contract on the Dalian Commodity Exchange DBYcv1 was up 1.37%, while its palm oil contract DCPcv1 added 1.29%. Soyoil prices on the Chicago Board of Trade BOc2 increased0.38%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for February fell 14% to 1,106,054 metric tons from the 1,286,509 metric tons shipped in January, cargo surveyor Intertek Testing Services said on Thursday.
According to independent inspection company AmSpec Agri Malaysia, exports fell 18.5% to 1,000,348 tons from 1,227,101 tons shipped during January.
Cargo surveyor Societe Generale de Surveillance (SGS) estimates that exportsof Malaysian palm oil products for February totalled996,845 metric tons, according to LSEG.
Indonesia plans to lower its crude palm oil reference price for the March 1-31 period to $798.90, while maintainingthe export tax at $33 per ton and and the levyat$85.
Indonesia’s palm oil output this year is projected to increase 5% year-on-year to57.6 million tons, while exports are expectedto stagnate at 32-33million tons, the Indonesia Palm Oil Association said.
Oil prices increased andwere set to end the week with modest gains,as talks of apotential ceasefire in Gaza turned more complex following thedeaths of more than 100 Palestinians while awaitingan aid delivery. O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Source Link: https://www.xm.com/research/markets/allNews/reuters/palm-set-for-weekly-gain-amid-anticipation-of-major-conference-inputs-53779237
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