Palm oil gains weekly, reaches two-week peak on Dalian strength
Malaysian palm oils futures reached their highest level in two weeks on Friday, and recorded their first weekly increase?in three as Dalian oil boosted the?market.
The benchmark March palm oil contract on Bursa Derivatives Exchange rose 50 ringgit or 1.24% to 4,087 Ringgit ($1,010.38) per metric ton. This is its highest closing rate since December 9. The contract increased by?4.66% in the past week.
A Kuala Lumpur based trader reported that the market had posted a strong rise, following the strength of Dalian?oils, even though the ringgit rose 0.17% at midday to 4.0360.
Dalian's soyoil contract, which is the most active one, rose by 0.67%. Palm oil gained 0.28%. After being closed on Christmas Day, the Chicago Board of Trade will reopen Soyoil at 1430 GMT.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
The palm ringgit's currency has weakened by 0.05% versus the dollar. This makes the commodity slightly cheaper to buyers who hold foreign currencies.
Investors weighed the potential?supply risk from geopolitical tensions developing in a sparsely attended post-Christmas session after the U.S. Airstrikes were carried out against Islamic State militants based in Nigeria, adding greater economic pressure to?Venezuelan crude oil.
Palm oil is a better option as a biodiesel feedstock because crude oil prices are rising. Indonesia's attorney-general said that the government may be able to collect fines of up to $8.5 billion in 2026 against palm oil companies, and illegal miners in forest areas. ($1 = 4.0445 ringgits) (Reporting and editing by Ashley Tang, Sonia Cheema, Harikrishnan Nair).
(source: Reuters)
