Palm rangebound but on track for a fourth weekly gain
The price of Malaysian palm oils futures fluctuated in a narrow range on Friday as production and inventories increased. However, the contract was set to gain for the fourth consecutive week as rival oils were firmer.
At midday, the benchmark contract for palm oil delivery in August on the Bursa Derivatives exchange fell 2 ringgit or 0.05% to 3,901 Ringgit ($922.88) per metric ton.
This week, the contract has increased by 1.11%.
Concerns over the rising production and stock levels continue to affect sentiment. David Ng is a proprietary trader with Kuala Lumpur's Iceberg X Sdn. Bhd.
We see support at 3,800 Ringgit and resistance at 4,00 ringgit.
Dalian's palm oil contract, which is the most active contract in Dalian, fell by 0.22%. Chicago Board of Trade Soyoil Prices grew by 1.24%.
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's value against the ringgit remained unchanged. The ringgit is worth 4.2270 dollars. (Reporting and editing by Ashley Tang, Sumana Nandy, and Rashmia Aich).
(source: Reuters)
