JAKARTA: Malaysian palm oil futures fell on Friday on profit taking, but posted a weekly gain on strength in rival edible oils on the Dalian and Chicago exchanges and Indonesia’s plan to raise its palm oil export levy.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange lost 5 ringgit, or 0.12%, to 4,038 ringgit ($992.14) a metric ton at closing.
The contract gained 1.18% for the week.
“Lots of profit-taking activities going on (today) after the sudden rally on Indonesia levy increase rumours. The profit taking starts after Dalian close firm drawing a selloff at the high of the week,” said a Kuala Lumpur-based trader.
Indonesia will likely increase its palm oil export levy to support the country’s biodiesel mandate, energy ministry official Eniya Listiani Dewi told reporters, citing tightening funds.
Dalian’s most-active soyoil contract rose 0.33%, while its palm oil contract was up 0.6%. Soyoil prices on the Chicago Board of Trade gained 0.51%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Palm oil is biased to retest support at 4,024 ringgit per metric ton, as it failed to break resistance at 4,074 ringgit, Reuters technical analyst Wang Tao said.
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