Palm rallies for the fourth consecutive week despite concerns over production and stock levels
Malaysian palm-oil futures rose on Friday after reversing losses at midday to record a fourth weekly gain despite concerns about rising production and inventory levels.
The benchmark contract for palm oil delivery in August on the Bursa Derivatives Market gained 14 ringgit or 0.36% to $3,917 ringgit (926.88 USD) per metric ton.
This week, the contract increased by 1.01%.
David Ng is a proprietary trader with Kuala Lumpur's trading firm Iceberg X Sdn. Bhd. He said that concerns about rising production and stock levels continued to affect sentiment.
We see support at 3,800 Ringgit and resistance at 4,00 ringgit.
Dalian's palm oil contract, which is the most active contract, gained 0.05%. Chicago Board of Trade Soyoil Prices rose 1.11%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
After U.S. president Donald Trump and Chinese leaders Xi Jinping reopened trade talks, oil prices fell but were on course for their first weekly increase in three weeks. This raised hopes for growth and higher demand in the two world's largest economies.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The dollar has strengthened by 0.02%, which makes palm slightly more expensive to buyers who hold foreign currencies. Reporting by Ashley Tang, Editing by Sumana Nady and Rashmia Aich. $1 = 4.2260 Ringgit.
(source: Reuters)
