Palm oil prices on Dalian soyoil are on the rise, and on track to weekly gains

The price of palm oil in Malaysia continued to rise on Friday as it tracked the gains made by rival soyoil traded at Dalian while waiting for new data. It is expected that the contract will book weekly gains.

By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange gained 12 Malaysian Ringgits, or 0.27%. It was now 4,447 Ringgit ($1,057.80), per metric ton.

Futures have risen 0.04% for the first week.

A Kuala Lumpur based trader stated that "the futures are trading between 4,400 and 4,500 while we wait for new leads."

Dalian's palm oil contract, which is the most active contract, decreased by 0.26%. Chicago Board of Trade Soyoil Prices fell by 0.31%.

As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.

Malaysian Palm Oil Board released a Friday statement that showed the price of crude palm oil in October was raised to a level which maintains export duties at 10%.

Brazilian crop agency Conab announced on Thursday that farmers in Brazil are expected to produce more soybeans this season. They expect to produce nearly 178 millions metric tons.

Intertek Testing Services reports that exports of palm oil products from Malaysia for the period September 1-15 increased 2.6% over August 1-15. AmSpec Agri Malaysia is an independent inspection company and states they decreased 0.1%.

The palm ringgit's trade currency, the dollar, fell by 0.24%, making the commodity more affordable for buyers who hold foreign currencies.

Technical analyst Wang Tao stated that palm oil could retest its support level at 4,401 Ringgit per metric tonne. A break below this price would open the door to the 4,342-4,366 range.

(source: Reuters)