Palm oil leads rival edible oils to third-week gains
Malaysian palm futures rose on Friday, heading for a third weekly gain in a row. They tracked the increase of rival edible oils traded at Dalian and Chicago.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for October delivery had gained 80 ringgit or 1.9% to 4,290 Ringgit ($1,010.84) per metric ton.
This week, the contract gained 2.78%.
"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 1.53%, while the most active soyoil contract in Dalian rose by 0.94%. Chicago Board of Trade soyoil prices were up by 0.78%.
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 trade currency, the dollar, has weakened by 0.05%, making the commodity more affordable for holders of other currencies.
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 rupiahs ($1.84 billion), enough to cover the country's mandate for biodiesel.
Technical analyst Wang Tao stated that palm oil could retest the resistance level of 4,316 ringgit for a metric ton. A break above this would lead to gains in the range 4,354 to 4,392 ringsgit, Wang Tao added. ($1 = 4.2440 ringgit)
(source: Reuters)
