Palm rises, but is poised to end three-week winning streak

The price of 'Malaysian Palm Oil Futures' rose on Friday, despite concerns over future production and firmer soyoil. However, the contract was still?on track to end a three-week streak of gains. By?midday, the benchmark palm oil contract on Bursa Derivatives Exchange for November delivery was up 43 Ringgit or 0.89% at 4,859 Ringgit ($1,206.61). The contract is down 3.41% this week. David Ng is a proprietary trader with Iceberg X Sdn. Bhd. in Kuala Lumpur. He said that Palm?tracked?gains in the soybean oil markets and production concerns for?the?medium term are seen as lifting market sentiment. "We see prices supported above 4,800 ringgit, and resistance at 4,950 ringsgit," said Ng. Dalian's palm oil contract increased by 0.49%, while the most active soyoil contract in Dalian rose by 1.27%. Chicago Board of Trade soyoil prices rose 2.31%.

Palm oil follows the price movements of other edible oils as it competes to gain a share in the global vegetable oils markets. Oil prices fell, and they are on course to end a two-week winning streak. This is despite the fact that oil prices had settled higher in the previous session after a report that U.S. president Donald Trump was not interested in returning?to the terms of a previous deal with Iran.

Palm oil is less attractive as a biodiesel source due to weaker crude oil futures. The ringgit (the currency used to trade palm) has gained 0.1% in value against the dollar. This makes the commodity a little more expensive for foreign buyers. ($1 = 4.0270 ringgit)

(source: Reuters)