KUALA LUMPUR: Malaysian palm oil futures rose on Friday, tracking gains in the Chicago soyoil contract and a weaker ringgit.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose 70 ringgit, or 1.67%, to 4,252 ringgit ($1,004.49) a metric ton during early trade.
Palm oil down on weak Chicago soyoil; firmer crude oil
The contract has so far gained 3.23% this week.
Fundamentals
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Soyoil prices on the Chicago Board of Trade were up 0.47%. Dalian’s vegetable oil markets were closed for China’s Golden Week holiday.
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Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
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The ringgit, palm’s currency of trade, weakened 0.33% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
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Oil prices rose in early Asian trade, holding on to their strong weekly gains, as investors weighed the Middle East conflict and potential disruptions in crude flows against an amply-supplied global market.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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India’s palm oil imports in September fell by nearly a third compared to the previous month, hitting a six-month low as a surge in tropical oil prices made it more expensive than rival oils, forcing refiners to postpone purchases, dealers said.
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India on Thursday approved a 101 billion-rupee ($1.2 billion) programme to double edible oil production within seven years, aiming to reduce dependence on costlier imports.
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