JAKARTA: Malaysian palm oil futures rose on Friday after two sessions of falls, but were on track for their second straight weekly fall due to a stronger ringgit.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 5 ringgit, or 0.13%, to 3,875 ringgit ($851.65) a metric ton by 0241 GMT.
Malaysian palm oil futures down
The contract has fallen 1.31% so far in the week.
Fundamentals
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Dalian’s most-active soyoil contract was down 0.13%, while its palm oil contract gained 0.67%. Soyoil prices on the Chicago Board of Trade were up 0.39%.
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Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
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Indonesia’s plan to revise domestic market obligation (DMO) rules for palm oil will not affect the DMO export ratio. Export quotas are set at four times the volume of palm oil that companies supply locally. Extra allotments are given to companies that sell in smaller, household-friendly sizes.
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The ringgit, palm’s currency of trade, strengthened 0.42% against the US dollar, making the vegetable oil less attractive for foreign currency holders.
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Malaysian palm oil exports in July were seen rising between 22.8% and 30.91%, cargo surveyor Amspec Agri and Intertek Testing Services said.
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Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports stood at 1.48 million tons, according to LSEG, a 23.6% jump from June.
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Palm oil is expected to retest support at 3,849 ringgit per metric ton, a break below which could open the way towards 3,809 ringgit, Reuters technical analyst Wang Tao said.
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