VEGOILS - Palm posts weekly gain and snaps three-week loss streak
Malaysian palm-oil futures ended a three week losing streak on Friday by posting a weekly gain. Short coverings supported the market while concerns about weak demand in India weighed.
At the close, the benchmark palm oil contract on Bursa Derivatives Exchange for December delivery fell by 4 ringgit (0.09%) to 4,442 Ringgit ($1,056.11) per metric ton. The contract increased by 1.05% in the past week.
A Kuala Lumpur based trader reported that the price of crude palm oil traded higher due to short coverings.
Five dealers report that India's palm-oil imports fell in September to the lowest level for four months as refiners substituted palm oil with soyoil.
Chicago Board of Trade soyoil was down by 0.48%. Dalian Commodity Exchange will be closed on October 1-8 due to public holidays.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the prices of rival edible oils.
After news of possible increases in OPEC+ production, oil prices were stable. However, they remained on track for a loss of 7-8% per week.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency, the dollar, fell by 0.07%, making the commodity more affordable for buyers who hold foreign currencies.
Agrinas Palma Nusantara, Indonesia's palm oil state company, plans to build a biofuel complex in Papua to produce biodiesel exclusively from palm oil. This was revealed in an interview by CNBC Indonesia.
The Indonesian Trade Ministry urged the European Union (EU) to adopt a World Trade Organization panel decision to remove countervailing duty on Indonesian Biodiesel Imports. Reporting by Ashley Tang, Editing by Subhranshu Sahu & Harikrishnan Nair.
(source: Reuters)