Palm oil prices close higher, but the third weekly decline is recorded.
Malaysian palm futures rose Friday, boosted by the stronger Dalian and Chicago contracts, and higher crude oil prices. However, they suffered a third successive weekly loss.
By the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up 42 ringgit or 1.13% at $3,746 ringgit ($848.47).
The contract fell 4.37% in the last week, after having fallen 1% the two previous weeks.
Anilkumar bagani, head of commodity research at Mumbai's Sunvin Group, says that Malaysian palm futures have opened higher due to a rebound in the markets for soyoil and rapeseed oils overnight.
The steady purchases by India have further aided the cause of palm oil.
Dalian's palm oil contract grew by 1.44%, while the most active Dalian soyoil contract climbed 0.32%. Chicago Board of Trade soyoil prices were up by 0.22%.
Palm oil tracks prices of competing edible oils that are competing for a market share on the global vegetable oil market.
The oil prices were stable on Friday, and are on track for a weekly increase of more than 3 percent as U.S. employment data eased concerns about demand while fears of an expanding Middle East conflict continued.
Brent crude futures rose 0.03% to $79.19 per barrel at 0954 GMT. Palm oil is more appealing as a biodiesel feedstock due to the stronger crude oil futures.
The palm ringgit's trade currency strengthened by 1.23 percent against the US dollar, increasing the price of the commodity for buyers with other currencies.
A survey shows that palm oil inventories are expected to fall in Malaysia in July after increasing for three months in a row.
The Malaysian Palm Oil Board, the industry regulator, is set to release monthly palm oil statistics on August 12. The Malaysian Palm Oil Board will release its monthly palm oil data on August 12.
(source: Reuters)
