KUALA LUMPUR: Malaysian palm oil futures traded in a tight range on Friday, as traders awaited the price outlook by top sector analysts at a major industry conference in India later in the day.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange eased 8 ringgit, or 0.18%, to 4,431 ringgit ($1,050.75) a metric ton at the midday break.
The contract rose 0.63% so far this week after two straight weekly declines.
The palm oil market traded in a lackluster manner, with participants staying cautious ahead of the palm analysts’ price outlook at the Globoil Conference today, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract rose 0.22%, while its palm oil contract added 0.8%. Soyoil prices on the Chicago Board of Trade were down 0.4%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Crude oil prices edged up, on track to rise at their steepest rate since early June as Ukraine’s attacks on Russia’s energy infrastructure push Moscow to restrict fuel exports and close to cutting crude output.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.09% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
India purchased 300,000 metric tons of soyoil from Argentina on Tuesday and Wednesday, the largest ever purchase in a two-day period, dealers said, taking advantage of Buenos Aires’ move to scrap export taxes on soybeans and other food products.
Palm oil may extend gains into a range of 4,479-4,492 ringgit per metric ton, as suggested by its wave pattern and a projection analysis, Reuters technical analyst Wang Tao said.
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