KUALA LUMPUR: Malaysian palm oil futures rose on Friday, snapping a two-week losing streak, supported by expectations of stronger demand from key markets in August.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 14 ringgit, or 0.33%, to 4,254 ringgit ($1,004.49) a metric ton at the close. The contract rose 0.21% this week.
Some demand looks to be returning in August for both crude palm oil and refined products, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari.
“Overall, I believe demand in August should be a bit higher than July,” he said.
Cargo surveyors are expected to release their August 1-10 export estimates on Monday.
Dalian’s most active soyoil contract fell 0.31%, while its palm oil contract shed 0.09%. Soyoil prices on the Chicago Board of Trade were down 0.45%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Palm oil falls on sluggish demand
Oil prices were stable but poised for the steepest weekly losses since late June on a tariff-hit economic outlook and a potential meeting between U.S. President Donald Trump and Russian counterpart Vladimir Putin.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.12% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
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