Malaysian crude palm oil settled up 0.48 percent Friday on gains crude oil and grains markets with players expect gains to continue next week, traders said. The benchmark September contract on Bursa Malaysia's Derivatives Exchange ended up 11 ringit to 2,300 ringgit ($720) a tonne by after trading as high as 2,320 ringgit per tonne.
Overall volume stood at 17,049 lots of 25 tonnes each, above the usual 10,000 lots. "Rising grains and energy prices helped prices sustain itself in positive territory," a trader in a local brokerage firm said.
"Players prefer to remain neutral without accepting more risk ahead of MPOB data on Monday," the trader said. The Malaysian Palm Oil Board will announce June production and stock for June on Monday while cargo surveyors will also report first 10 days exports in July on the weekend.
Gains in soybean markets also expected to offer support on palm oil futures next week. Palm oil prices moves in tandem with soyaoil prices. "There is a concern about lower yield in US soybeans because of hot weather. If soyaoil prices firm, investors will not comfortable to sell down the palm oil future," another trader said. US soybean futures up more than 5 percent on Friday, registering its biggest gains since November. Palm oil moves in tandem with soyaoil prices. US soyaoil for July delivery edged up 0.19 percent, while the most active January soyoil contract on China's Dalian Commodity Exchange gained 0.46 percent.
INDONESIA PALM TRADES: The Jakarta-based PT KPB Nusantara, formerly known as the state marketing centre, sold 8,500 tonnes of crude palm oil offered in an auction on Friday with the top price at 7,065 rupiah ($0.780) per kg, against 7,026 rupiah per kg on Thursday. Producers in Medan, did not hold palm oil auctions on Friday.
Refiners in Jakarta offered refined, bleached, deodorised (RBD) palm oil, used for cooking oil, at 7,450 rupiah per kg, against 7,420 rupiah per kg on Thursday. PT Astra Agro Lestari Tbk offered 500 tonnes of palm kernel oil at $1,035 a tonne. Buyers bid at $1,024 a tonne but no deals were done.