Palm oil prices close higher and snap a 3 week losing streak

Malaysian palm futures rose Friday on some bargain-buying after a steep decline following an announcement earlier this week of a new Indonesian Export Monitoring System. The benchmark 'palm oil contract' for August delivery on the Bursa Derivatives exchange closed up 27 ringgit or 0.61% at $4,485 ($1,131.15). The futures recorded a weekly gain of 1.49%, which is their first increase in three weeks. The futures are trading higher today due to bargain-buying and a correction up from the recent steep drop. He said that the market is worried Indonesia will start exporting more palm oil until the new system is in place and this could cap upward momentum.

Dalian's palm oil contract, which is the most active contract, fell 1.7% while soyoil prices dropped 0.85%. Chicago Board of Trade soyoil prices were up by 0.8%.

Palm oil follows the price movement of competing edible oils as it competes to gain a share of the global vegetable oils market.

Oil prices rose on Friday, as investors questioned the prospects of a breakthrough during U.S.Iran peace talks. However, they remained on course for a loss this week.

The?price of crude oil futures has increased, making?palm an attractive feedstock for biodiesel. Malaysian Palm Oil Board officials warned on Thursday that Indonesia's plan for a centralized export of palm oil and other key commodities could temporarily disrupt the flow of exports.

Exports of Malaysian palm oil products fell between 13.9% to 20.5% in the month from May 1-20, according to cargo surveyors.

(source: Reuters)