Palm oil prices rise on data from rival oils and cargo surveyors, a 4th week gain.

Malaysian palm futures were up on Friday, and on course for a fourth consecutive weekly gain. This was boosted by stronger rival edible oils as well as positive data on exports from cargo surveyors.

By midday, the benchmark palm oil contract on Bursa Derivatives exchange for December delivery rose by 89 ringgit or 2.1% to 4,322 Ringgit ($1,008.63), a metric tonne. The contract has gained 0.51% this week.

Darren Lim is a commodities analyst with Singapore-based Philip Nova. He said that the market's performance was influenced by several factors including the robust export data from cargo surveyors covering the period Oct. 1-10, the stronger Dalian Commodity Exchange's vegetable oils, and the gains in Chicago soyoil overnight.

He said: "From a technological perspective, we also observe a pattern that is typical indicative of a bullish tendency."

Dalian's palm oil contract, which is the most active contract in Dalian, grew by 1.95%. Chicago Board of Trade soyoil prices were up by 0.64%.

As rival edible oils compete to gain a share in the global vegetable oil market, palm oil monitors the price movement of their competitors.

Exports of palm oil-based products from Malaysia between Oct. 1-10 were estimated to have increased by 13.6% to 18.9% compared with a month ago.

The palm ringgit's trade currency strengthened by 0.07% against dollars, increasing the price of the commodity for buyers who hold foreign currencies.

Oil prices eased on Monday after the previous day's rally, but they remained poised for a second consecutive weekly gain. Investors weighed the impact that hurricane damage would have on U.S. oil demand against the possibility of a broad supply disruption in the event Israel attacked Iranian oil sites.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

Technical analyst Wang Tao stated that palm oil is neutral between 4,206 and 4,293 ringgits per ton. An escape from this range could indicate a direction.

(source: Reuters)