Palm VEGOILS - Palm tracks Dalian rivals down, posts second weekly gain

Malaysian palm oil futures rose for the second week in a row?on friday despite being drag down by weakness of Dalian vegetable oil prices.

At closing, the benchmark palm oil contract for October delivery at Bursa Malaysia's Derivatives exchange was down 12 Ringgit or 0.26% at 4,594 Ringgit ($1,123.23).

The contract rose 1.79% in the past week. On Friday, it traded between 4,575 ringgit and?4,608 per ton.

A Kuala Lumpur based trader stated that "Bursa Malaysia crude Palm Oil futures opened marginally lower as they tracked the mixed performance of other vegetable oils."

The trader stated that "prices are likely going to consolidate in a narrow range, as market participants wait for new catalysts."

Dalian's highest-volume soyoil contract fell 0.57% while palm oil contracts declined by 0.26%. Chicago Board of Trade soyoil prices increased by 1.35%.

Palm oil follows the price movement of other edible oils, as it competes to gain a share in the global vegetable oil industry.

Oil prices increased by about 2% Friday, after the U.S. and Iran intensified their attacks in the Gulf. Shipping was also threatened by the threat of a possible Red Sea closure "on top of the restricted travel through the Strait o'Hormuz".

Palm oil futures are more attractive due to the stronger crude oil prices.

U.S. Climate Prediction Center reports that El Nino has intensified over the last month.

Technical analyst Wang Tao stated that palm oil is still aiming for its high of '4,630 ringgit/metric ton on July 9th, as it seems to have broken through the upper trendline. $1 = 4.0900 Ringgit (Reporting and editing by Sonia Cheema; Rashmi aich, Diti pujara, and Sonia Cheema).

(source: Reuters)