VEGOILS - Palm logs weekly gains as traders wait for supply data to provide further clues
Malaysian palm oils traded at a narrow range on Thursday and posted a weekly increase, while traders awaited the Malaysian Palm Oil Board's demand and supply figures next week.
The benchmark contract for palm oil delivery in November on the Bursa Derivatives Market gained 7 ringgit or 0.16% to 4,449 Ringgit ($1,058) per metric ton by close. The contract increased by 1.42% in the past week.
The Malaysian Stock Exchange will be closed Friday due to a public holiday.
Paramalingam Supramaniam is the director of Selangor brokerage Pelindung Bestari. He said that traders are reducing their positions in anticipation of next week's Malaysian Palm Oil Board exports and data.
He said that "September export demand will remain strong, while production numbers are the main determinant for the next market direction."
A survey shows that Malaysian palm oil inventories will rise for the sixth consecutive month in august, as production continues outpacing exports, despite an improvement in demand.
Dalian's palm oil contract, which is the most active contract, fell by 0.21%. Chicago Board of Trade soyoil prices were down by 0.1%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
Oil prices fell, extending a more than 2% drop from the previous session. Investors awaited a meeting at the weekend of OPEC+, where producers will be expected to discuss another increase in production targets.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The value of the Ringgit, Palm's trade currency, against the U.S. Dollar remained constant.
(source: Reuters)
