Palm trades lower and is set to suffer a second weekly loss
Malaysian palm futures fell on Friday and are on course to record its second consecutive weekly loss. The market is range-bound, as it searches for direction.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had fallen 29 ringgit (0.65%) to 4,442 Ringgit ($1,051.61) per metric ton.
Futures have lost 1.57 percent so far this week.
A Kuala Lumpur based trader stated that "Today's Futures" are still trading between 4,400 and 4,500 Ringgits while they wait for new leads.
Dalian's palm oil contract, which is the most active contract, gained 0.37% while soyoil gained 0.17%. Chicago Board of Trade soyoil prices were down 0.45%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
Early Friday morning, oil prices fell, reversing some of the gains made the day before, but still on course for a weekly increase, as supply concerns were fueled by new U.S. sanction against Russia's largest oil companies due to the conflict in Ukraine.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit, the currency of trade for the company, has strengthened by 0.12% against dollar. The ringgit's strength would increase the price of palm for foreign currency buyers.
Technical analyst Wang Tao stated that palm oil could break through resistance at 4,471 Ringgit per metric tonne and move into the 4,490 to 4,510 range.
(source: Reuters)
