KUALA LUMPUR: Malaysian palm oil futures climbed on Friday, buoyed by stronger rival Dalian and Chicago contracts and firmer crude oil prices, but remained on track for a third consecutive weekly loss.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 59 ringgit, or 1.59%, at 3,763 ringgit ($844.29) a metric ton by the midday break.
The contract has lost 3.9% so far this week.
Malaysian palm oil futures opened higher, lifted by a recovery in the soyoil, rapeseed oil and energy markets overnight, as well as a bullish recovery in Chinese vegetable oil futures in Asian hours, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
“The steady buying by India has further helped the palm oil cause.”
Dalian’s most-active soyoil contract rose 0.53%, while its palm oil contract advanced 1.44%.
Soyoil prices on the Chicago Board of Trade were up 0.47%.
Palm oil tracks the prices of rival edible oils as they compete for a share of the global vegetable oils market.
Malaysian palm oil higher
Crude oil prices edged up, heading for a weekly gain of more than 3%, as US jobs data calmed demand concerns and fears of a widening Middle East conflict persisted. Brent crude futures rose 9 cents, or 0.11%, to $79.25 a barrel by 0406 GMT.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.29% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
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