Palm oil posts a weekly gain of more than 5%
Malaysian palm-oil futures closed higher Friday, and recorded a second week of gains after data revealed that exports were up for the period August 1-15.
At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up 75 Ringgit or 1.7% at $4,478 Ringgit ($1,063.66) per metric ton.
Futures rose 5.24% in value this week.
According to AmSpec Agri Malaysia and Intertek Testing Services cargo surveyors, exports of Malaysian products containing palm oil rose by 21.3% between August 1-15.
Dalian's palm oil contract, which is the most active contract, gained 0.11% while its soyoil contract dropped 0.19%. Chicago Board of Trade soyoil prices were up by 0.33%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
The Indonesian government will intensify its crackdown on illegal exploitation after an investigation found that palm plantations covering 3.7 million hectares (14,530 square miles) violated the law. This was announced by President Prabowo on Friday.
A leading trade group reported that India's palm-oil imports fell in July due to cancellations of contracts. Meanwhile, soyoil exports soared by a third year, driven by the competitive price and arrival of June consignments delayed, it said.
Oil prices dropped on Friday, as traders awaited the talks between U.S. president Donald Trump and Russian President Vladimir Putin. Some expect that these talks could lead to a easing of sanctions against Moscow for its involvement in the Ukraine War.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm's trade currency, the ringgit (0.17%), has weakened against the dollar. This makes the commodity more affordable for buyers who hold foreign currencies.
(source: Reuters)
