KUALA LUMPUR: Malaysian palm oil futures rose on Friday and logged a fifth consecutive weekly gain, their longest winning run in three years, as expectations of weaker production supported prices.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 22 ringgit, or 0.47%, to 4,664 ringgit ($1,056.16) a metric ton at the close.
The contract provisionally rose 1.57% this week.
The market is trading higher due to expectations of a weaker output in Malaysia, which may lower overall stock levels in the country, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Dalian’s most-active soyoil contract fell 0.08%, while its palm oil contract added 0.95%. Soyoil prices on the Chicago Board of Trade were down 0.48%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices edged down but were still poised for a weekly rise on concerns over supply disruptions in Russia and an improving outlook for demand in the U.S. and China.
Malaysian palm oil futures slip on profit taking
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The Indonesian government has not held discussions on restricting palm oil exports ahead of the Muslim fasting month of Ramadan, trade ministry official Farid Amir said.
Cargo surveyors estimated that exports of Malaysian palm oil products during February 1-20 fell between 0.3% and 8.1%, compared with the same period a month earlier.
Indian refiners have cancelled orders for 70,000 metric tons of crude palm oil scheduled for delivery between March and June because of a surge in benchmark Malaysian prices and negative refining margins in India, four trade sources said.
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