Palm oil closes at its highest level in 14 weeks with a weekly gain of more than 3%
Malaysian palm futures closed higher Friday, and recorded a third weekly gain in a row. This was boosted by the strength of rival edible oils from Dalian and Chicago.
Futures have also recorded a weekly gain of 3.40% and their highest close in the last 14 weeks.
The benchmark contract for palm oil delivery in October on the Bursa Derivatives Exchange rose 106 ringgit or 2.52% to 4,316 Ringgit ($1,017.92).
"Palm Oil prices rose, supported by strength in Chicago Soyoil and Dalian Palm and Soyoil Futures, along with expectations of a lower ringgit because of a strong U.S. Dollar," said Darren Lim.
Dalian's palm oil contract grew by 2.28%, while the most active soyoil contract climbed by 1.34%. Chicago Board of Trade soyoil prices were up by 1%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks price changes of competing edible oils.
The oil prices rose on Friday as investors considered new European Union sanctions against Russia.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
AmSpec Agri Malaysia reports that exports of Malaysian Palm Oil Products for the period July 1-15 fell by 5.3% compared to June 1-15. Intertek Testing Services, a cargo surveyor, reported a drop of 6.2%.
Malaysia also increased its crude palm oil export duty to 9%, up from 8.5%.
As of July 16, Indonesia's biodiesel usage reached 7.42 millions kilolitres, or 47.5% of the allocation for 2025.
The Indonesian plantation fund agency believes that levies on palm oil collected this year will reach 30 trillion rupiah (US$1.84 billion), enough to cover the country's mandate for biodiesel. ($1 = 4,2400 ringgit). (Reporting and editing by Rashmi aich; Reporting by Dewi kurniawati)
(source: Reuters)
