BEIJING: Malaysian palm oil futures on Friday regained some ground lost this week, helped by robust exports and tracking a rise in other oils.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange climbed 33 ringgit or 0.84% to 3,951 ringgit ($848.04) during early trade, snapping three days of losses. Even so, the contract is poised to lose 1% for the week.
Fundamentals
Exports of Malaysian palm oil products for July 1-25 rose 31% year on year, cargo surveyors Intertek Testing Services and Amspec Agri said on Thursday.
Dalian’s most-active soyoil contract gained 1.4%, while its palm oil contract rose 1.7%. Soyoil prices on the Chicago Board of Trade were up 0.5%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world’s largest energy consumer.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may test resistance at 3,953 ringgit per metric ton, a break above which could open the way towards 3,977 ringgit to 4,017 ringgit, Reuters technical analyst Wang Tao said.