JAKARTA: Malaysian palm oil futures posted a weekly gain on Friday as strong export data and rising crude oil prices offset largely weaker rival oils.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 13 ringgit, or 0.35% to 3,771 ringgit ($791.40) a metric ton, and ended the week up 0.35%.
“Palm prices were under pressure throughout the day but trimmed losses to close marginally higher on promising exports but uncertain production outlook,” said Sathia Varqa, senior analyst with Fastmarkets Palm Oil Analytics.
Exports of Malaysian palm oil products for Oct. 1-20 estimated to rose between 7.9% and 9.9%, data from AmSpec Agri Malaysia and Intertek Testing Services showed.
Dalian’s most-active soyoil contract fell 1.36%, while its palm oil contract was down 1.82%. Soyoil prices on the Chicago Board of Trade were up 0.76%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Stronger crude oil prices amid heightened fears that the Israel-Gaza crisis may spread and disrupt supply from one of the world’s top-producing regions, also supported prices.
“Bullish momentum in crude oil and a persistent coverage from India and China has limit the downside in palm oil futures, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin group. Indonesia’s palm oil exchange began the first trading of crude palm oil spot contract on Friday, part of an effort by the world’s biggest producer of the oil to create credible benchmark prices.
Palm oil may retrace further to 3,682 ringgit per metric ton, to complete a pullback towards a falling trendline, said Reuters technical analyst Wang Tao.
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