Palm futures post fourth consecutive weekly gain

After losses earlier in week, Malaysian palm futures posted a fourth weekly gain. A softer ringgit helped support the market. However, uncertainty about the Middle East war and crude oil outlook capped gains.

At close, the benchmark June palm oil contract on Bursa Malaysia's Derivatives exchange rose 47 ringgit or 1.03% to 4,630 Ringgit ($1,154.04) per metric ton. The contract?advanced by 0.41% in the past week.

Paramalingam Supramaniam is a director of Selangor brokerage Pelindung Bestari. He said that the market has priced in the uncertainty around?the war? and?the next direction for crude oil. The weakening ringgit also provides?additional help.

Dalian's soyoil contract with the highest volume rose by?1% while palm oil contracts advanced by 2.13%. Prices of soyoil?on Chicago Board?Trade rose 0.43%.

As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.

Oil prices are on course for a weekly drop after U.S. president Donald Trump extended the?a break on attacks on Iran's power plants for 10 more days. Investors remain on edge, however, as an immediate?resolution of the conflict looks unlikely.

Palm oil is less attractive as a biodiesel feedstock due to weak crude oil futures.

The palm ringgit's currency has fallen 0.5% in value against the dollar. This makes the product cheaper for foreign buyers.

Malaysia's government announced that it is taking steps to ensure a stable supply of fertilisers after the Middle East conflict and China’s export restrictions caused raw material prices to rise and a shortage in domestic supplies. Reporting by Ashley Tang, Editing by Sherry Phillips, Subhranshu sahu and Diti pujara.

(source: Reuters)