KUALA LUMPUR: Malaysian palm oil futures ended on Friday marginally higher, averting a third straight session of declines, supported by a technical correction and strength in US soyoil prices.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was 0.05 per cent up at 2,219 ringgit ($540.56) a tonne but down 0.85pc on the week for a second consecutive weekly fall. Trading volumes stood at 23,776 lots of 25 tonnes each.
“The palm market is reacting to stronger bean oil prices during Asian hours,” said a Kuala Lumpur-based futures trader, referring to soyoil on the Chicago Board of Trade. Palm oil prices are affected by movements of other edible oils that compete in the global vegetable oils market. Market sentiment remained muted, however, on rumoured declines in exports, traders said.
Palm fell more than 1pc on Thursday after data released by the Malaysian Palm Oil Association showed a 13.8pc increase in production for the August 1-20 period.
Palm oil output in Malaysia, the world’s second-largest producer, typically rises in the third and fourth quarters of the year in line with the seasonal trend.
Published in Dawn, August 25th, 2018