Palmetto reaches highest level in five weeks; set for weekly gains

Malaysian palm futures rose?to the highest level in five week?on friday, supported by stronger Dalian edible oils and a weaker ringgit. They were also poised to post weekly gains.

By midday, the benchmark?palm-oil contract for May delivery at the Bursa Derivatives exchange had gained 59 Ringgit or 1.4% to 4,266 Ringgit ($1,080.82) per metric ton. The contract is on track to have its largest weekly gain since the week of November 25th 2024. It has gained 5.54% this week due to a price rally in crude oil. "Bursa Malaysia CPO Futures opened gap higher after a bullish rally on Chicago soyoil and crude oil futures overnight. Also, there was a strong recovery in Dalian Palm olein, and Zhengzhou Rapeseed Oil?futures during Asian hours," Anilkumar Bagani, commodity researcher at Sunvin Group in Mumbai, said.

Bagani stated that palm oil is the cheapest oil in comparison to its rivals, soy oil, sunflower oil, and rapeseed. It is also trading almost neck-and-neck to gas oil prices. This makes it more appealing to new customers.

Dalian's most active soyoil contract gained 1.13% while its palm oil contract grew 2.33%. The Chicago Board of Trade's?soy oil contract lost 0.65%.

As palm oil competes to gain a piece of the global vegetable oil market, it tracks the price movements of its rival edible oils.

The Malaysian Ringgit, which is the currency of the contract, has weakened by 0.18% against U.S. Dollars, making palm oil more affordable for holders of foreign currencies.

Technical analyst Wang Tao stated that palm oil could retest its?resistance? at 4,260 ringgit/metric ton; a break over this level would open the door for 4,337 ringgit.

(source: Reuters)