Palm rises but poised to snap three-week winning streak

KUALA LUMPUR: Malaysian palm oil futures rose on Friday, supported by firmer soyoil prices and worries over future output, though the contract remained on track to snap a three-week winning streak. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 43 ringgit, or 0. 89%, at 4, 859 ringgit ($1, 206. 61) a metric ton by the midday break. The contract has declined 3. 41% so far this week. Palm tracked gains in the soybean oil market and production concerns over the medium term are seen lifting market sentiment, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd. “We see prices supported above 4, 800 ringgit and resistance at 4, 950 ringgit, ” he said. Dalian’s most-active soyoil contract rose 1. 27%, while its palm oil contract added 0. 49%. Soyoil prices on the Chicago Board of Trade were up 2. 31%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices fell and are on track to snap a two-week winning streak, despite settling higher in the previous session following a report that US President Donald Trump is not interested in returning to previous deal terms with Iran. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, strengthened 0. 1% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.

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