VEGOILS - Palm records weekly loss and snaps 3-week winning streak
Malaysian palm oil futures rose by more than 1% on Friday, boosted by higher soyoil and concerns?over the future production, but still recorded a weekly loss, ending its three-week streak of gains.
At the close, the benchmark contract for palm oil delivery in November on the Bursa Derivatives exchange was up 74 Ringgit or 1.54% at 4,890 Ringgit ($1,206.61). The contract fell 2.55% in the last week.
Palm has tracked gains on the soybean oil markets and concerns about production?over a medium-term are seen as lifting market sentiment. David Ng is a proprietary trader at Kuala Lumpur based trading firm, Iceberg X Sdn Bhd.
He said, "We see prices supported above 4,800 Ringgit and resistance at 4950 Ringgit." Dalian's palm oil contract increased 1.1%, while the most active soyoil contract grew by 1.67%. Chicago Board of Trade soyoil prices rose 2.13%.
Palm?oil follows the price movement of other edible oils as it competes to gain a share in the global vegetable oil market. Oil prices remained'steady' but were on course for a weekly decline as traders weighed stagnant diplomatic?talks between the U.S. and Iran against certain crude flows through?Strait of Hormuz.
Palm oil is less appealing as a feedstock for biodiesel due to the weaker crude oil futures.
The palm ringgit's currency of trade has strengthened by 0.2% against the dollar. This makes the commodity a little more expensive for foreign currency buyers.
(source: Reuters)
