KUALA LUMPUR: Malaysian palm oil futures rose on Friday and logged a weekly gain, buoyed by estimates of higher exports in the world’s second-biggest producer.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed 86 ringgit, or 2.15%, higher at 4,079 ringgit ($867.13) per metric ton. The contract gained 5% for the week.
Expectations of a 20% increase in exports of Malaysian palm oil products in May have boosted prices, a Kuala Lumpur-based trader said.
“The recent surge in sunflower oil prices has also turned buyers to purchase palm as it is comparatively cheaper,” the trader said.
Cargo surveyor Intertek Testing Services said Malaysian palm oil exports for May rose 22.1% from the month before, while independent inspection company AmSpec Agri Malaysia estimated a 22.8% increase.
Another cargo surveyor, Societe Generale de Surveillance, estimated the exports at 1,161,370 metric tons, from 1,045,679 tons a month earlier, LSEG data showed on Friday.
Malaysian palm oil extends gains on better demand from key buyers
Dalian’s most-active soyoil contract rose 0.32%, while its palm oil contract added 1.28%. Soyoil prices on the Chicago Board of Trade were up 0.87%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Oil prices held steady on Friday as investors await U.S. inflation data for clues on the demand outlook before turning attention to Sunday’s OPEC+ meeting to determine the state of supply into next year.
Brent futures gained up 14 cents, or 0.17%, by 0908 GMT to trade at $82.00 a barrel.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Indonesia set its crude palm oil reference price for June at $778.82 per metric ton, a trade ministry regulation showed, down from $877.28 in May.
The ringgit, palm’s currency of trade, weakened 0.04% against the dollar, making the commodity less expensive for buyers holding the foreign currency.
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