Palm oil snaps a four-month losing streak thanks to rival crude and oils

Malaysian palm-oil futures ended a four month losing streak on the Friday, even though they closed lower for that day.

The ringgit fell as well. It rose every week to?a 4.42% gain in January, boosted by higher crude oil and soyoil prices, positive output and export figures, and supportive data.

The benchmark April palm oil contract on the Bursa?Derivatives exchange was down 88 Ringgit or 2.04% at $4,229 ringgit (1,073.62) per metric ton?at the closing. Today's futures (were) on a weekend profit-taking spree and also tracked weaker Dalian and Chicago soybean oil after their recent rally", a Kuala Lumpur based trader stated. Dalian's palm oil contract fell by 0.96%, while the most active soyoil contract in Dalian dropped 0.84%. Soyoil prices at the Chicago Board of Trade fell 1%.

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

The ringgit fell by 0.36% in value against the dollar. This made the commodity more affordable for foreign currency buyers.

Indonesia has set a reference price for crude palm oil at

$918.47

Trade Ministry regulations showed that the price per metric tonne for February was $915.64, a slight increase from January's $915.64. Oil prices fell more than 1% on Friday, from multi-month highs. However, they are still set to make their biggest gains in years as the risk premium soared due to a possible U.S. strike on Iran.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

(source: Reuters)