VEGOILS - Palm logs weekly increase, reaches four-month peak
The market for Malaysian palm oils futures rose to its highest level in four months on Friday, and recorded a weekly gain as the market was supported by a stronger Dalian edible oil and a weaker Ringgit.
The benchmark contract for palm oil delivery in May on the Bursa Derivatives exchange gained 158 Ringgit or 3.76% to 4,365 Ringgit ($1,107.31).
The contract gained 7.99% in this week, aided by the price rise of crude oil. It was its biggest weekly gain since November 25, 2024.
Anilkumar bagani, head of commodity research at Sunvin Group in Mumbai, said that "Bursa... CPO 'futures' opened gap higher after a bullish rally on Chicago soyoil and gas oil futures overnight.
Bagani added that there are concerns about oil deliveries being affected by the Middle East conflict.
Dalian's palm oil contract grew by 2.44%, while the most active?soyoil contract gained 0.79%. Chicago's?Board of Trade for soy oil lost 0.12%.
As palm oil competes to gain a share in the global vegetable oils market, it tracks 'the price movement' of its rival edible oils.
The Malaysian ringgit (the contract's currency) has weakened by 0.05% against U.S. dollars, lowering the price of palm oil for holders of foreign currencies. $1 = 3.9420 Ringgit (Reporting and editing by Mrigank Dahniwala, Sonia Cheema).
(source: Reuters)
