Demand hopes help VEGOILS Palm snap a two-week losing streak
Malaysian palm futures rose Friday, ending a two-week loss streak. This was supported by the expectation of higher demand in key markets for August.
At the close, the benchmark contract for palm oil delivery in October on the Bursa Derivatives Market gained 14 ringgit (0.33%) to 4,254 Ringgit ($1,004.49) per metric ton. The contract increased by 0.21% in the past week.
Paramalingam Supramaniam of brokerage Pelindung Bestari said that there is a return in demand for crude palm oil as well as refined products.
He said, "Overall I think demand in August will be higher than it was in July."
On Monday, cargo surveyors will release their estimates of August 1-10 exports.
Dalian's palm oil contract, which is the most active contract, fell by 0.09%. Chicago Board of Trade soyoil prices were down 0.45%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
The oil prices remained stable, but were on track for their steepest weekly loss since late June due to a tariff-hit economy outlook and the potential meeting between U.S. president Donald Trump and his Russian counterpart Vladimir Putin.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's currency has weakened by 0.12% against the US dollar, making it slightly cheaper for buyers who hold foreign currencies. ($1 = 4.2350 ringgit)
(source: Reuters)
