Palm oil ahead of the lead on production data and poised to gain weekly
Malaysian palm futures were slightly higher on Friday and on course for a weekly increase as traders awaited more information on production data.
At the midday break, the benchmark contract for palm oil on Bursa Derivatives Exchange, August delivery, gained 24 ringgit (0.63%) to 3,844 Ringgit ($904.90). The contract has gained 1.13 % so far this week.
A Kuala Lumpur-based broker said that the market was waiting for the Malaysian Palm Oil Association to release its production data from May 1-20. The data is expected later today or early the following week.
Dalian's soyoil contract with the highest volume of trading rose by 0.21% while palm oil contracts fell by 0.17%. Chicago Board of Trade soyoil prices rose by 1.36%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
The oil prices fell, weighed down both by a stronger dollar and the potential for OPEC+ to increase their crude oil production.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit's currency has strengthened by 0.56% compared to the U.S. Dollar, increasing the price of the commodity for buyers who hold foreign currencies.
Technical analyst Wang Tao stated that palm oil could test the resistance level of 3,883 Ringgit per metric tonne. A break above this mark would open up the possibility for a move to 3,927 Ringgit. $1 = 4.2480 Ringgit (Reporting and editing by Ashley Tang)
(source: Reuters)
