KUALA LUMPUR: Malaysian palm futures rose on Friday tracking rival oils as expectations of a softer December output continue to support, setting the commodity up for a fourth straight session of gains.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange climbed 1.5% to 4,546 ringgit ($1,082.90) in early trade.
Palm has gained 3.1% this week, while the futures contract rose 0.6% in overnight trade. Dalian’s soyoil contract for May delivery rose 1.14%, while its palm oil contract gained 1.43%. Soybean oil prices on the Chicago Board of Trade for May delivery were up 1.17%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Oil prices bounced in a light-volume session on Thursday on signs the worst effects of the Omicron coronavirus variant might be more containable than previously feared, even as countries imposed travel restrictions on surging infection levels.
Stronger crude oil futures typically make palm a more attractive option for biodiesel feedstock. Palm oil may break a resistance at 4,519 ringgit per tonne and rise into 4,555-4,625 ringgit range.
The S&P 500 notched a record-high close on Thursday, with oil prices also rising, as investors and traders were optimistic about positive economic data and discounted the impact of the Omicron variant on the economy.
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