Palm trades higher but still on course for a third weekly loss
Malaysian palm oils futures continued to rise on Friday. They ended a losing streak of four sessions, thanks to the strength of rival vegetable oil, but they remain on track for a third consecutive weekly decline.
By midday, the benchmark contract for palm oil delivery in July on the Bursa Derivatives exchange gained 4 ringgit or 0.1% to 4,015 Ringgit ($911.46) per metric ton.
Futures prices have fallen by 4.68% this week.
A Kuala Lumpur based trader stated that "the futures appear to be consolidating, and trading between 4000 and 4080 ringgit, while waiting for a new lead on the market."
Dalian's palm oil contract, which is the most active contract in Dalian, gained 0.05%. Chicago Board of Trade Soyoil Prices rose by 0.67%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
A circular posted on the website of the Malaysian Palm Oil Board on Tuesday showed that Malaysia kept its 10% export tax on crude palm oil for May and reduced its reference price.
According to cargo surveyor Intertek Testing Services, and independent inspection company AmSpec Agri Malaysia, exports of Malaysian products containing palm oil for the period April 1-15 rose between 13.6% and 17% from a year ago.
The Malaysian Ringgit, which is the currency of contract trade, has largely been flat against the U.S. Dollar. The contract becomes more attractive to foreign currency holders when the ringgit is weaker. ($1 = 4,4050 ringgit). (Reporting and editing by RashmiAich; DewiKurniawati)
(source: Reuters)
