Palm climbs on Dalian's strength; set to gain weekly
Malaysian palm oils futures were up on Friday, and they were poised to make their first weekly gains in three weeks,?boosted by Dalian oil, which was stronger, although a stronger ringgit limited the gains.
By midday, the benchmark March palm oil contract on Bursa Derivatives Exchange had gained 31 ringgit or 0.77% to 4,068 Ringgit ($1,007.93).
This week, the contract has increased by?3.38%.
A Kuala Lumpur based trader reported that the market had a strong rally. It was a result of the strength in Dalian oil, even though ringgit rose 0.17%, to 4.0360.
Dalian's soyoil contract with the highest volume rose by 0.77%. Palm oil gained 0.37%. Soyoil trading on the Chicago Board of Trade reopens at 1430GMT.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks?price movement of rival edible oils.
The palm ringgit's trade currency strengthened by 0.17% against dollars, increasing the price of the commodity for buyers who hold foreign currencies.
Oil prices rose after the United States increased pressure on Venezuelan oil exports and conducted airstrikes in Nigeria against militants of the?Islamic State at the government's request.
Palm oil is more appealing as a biodiesel source because of the higher crude oil futures. Indonesia's Attorney General said that the government could collect $8.5 billion in fines from palm oil companies, and illegal miners, in 2026.
Technical analyst Wang Tao stated that palm oil could break through resistance at 4,042 Ringgit per ton, and reach 4,078 Ringgit.
(source: Reuters)
