Palm logs third week gain despite Chicago Soyoil drag
The market for Malaysian palm oil futures recorded a third consecutive weekly gain. However, the market fell on Friday due to the weaker Chicago soyoil.
At the close, the benchmark contract for palm oil delivery in August on the Bursa Derivatives Market fell 54 ringgit (1.37%) to 3,878 Ringgit ($911.83) per metric ton.
This week, the contract increased by 1.33%.
Crude palm futures fell in line with the weakness of the Chicago soybean oil markets, according to David Ng, a proprietary trading at Kuala Lumpur's Iceberg X Sdn. Bhd.
He said: "We have identified support at 3,800 Ringgit and resistance at 3,550 Ringgit."
Dalian's palm oil contract, which is the most active contract, fell by 0.89%. Chicago Board of Trade soyoil prices were down by 1.74%.
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 were stable Friday but are on course for a second weekly decline. This is due to expectations of an OPEC+ production hike, and the uncertainty surrounding U.S. Tariffs following the latest legal twist that kept them in effect.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency, the U.S. dollar, fell by 0.31%, making the commodity more affordable for buyers who hold foreign currencies. ($1 = 4.2530 ringgit)
(source: Reuters)
