Palmettos rise after three days of falling, and is set to experience its first weekly decline in four
Malaysian palm-oil futures were up on Friday, after three sessions in a row of losses. However, they are on track for their first weekly drop in four weeks. The market is awaiting export data to provide further clues.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had gained 14 ringgit or 0.28% to 4,978 Ringgit ($1,112.15) per metric ton.
The contract is down 2.41% for the week.
A Kuala Lumpur based trader stated that "there was some profit taking in palm oil before the weekend after it fell for 3 straight sessions". Investors awaited export figures to get more clues.
Dalian's palm oil contract grew 0.53%, but its most active soyoil contract dropped 0.91%. Chicago Board of Trade soyoil prices were up by 0.43%.
As palm oil competes to gain a share of the global vegetable oils industry, it tracks the price changes of competing edible oils.
Chicago soybean and corn contracts fell for the fourth consecutive session as traders feared that policy changes in biofuels under Donald Trump's incoming U.S. presidency would dampen domestic demand.
The European Parliament tried to soften a ban on imports of products such as beef or soy that are linked to deforestation on Thursday, and supported a one-year extension to the new rule. This was a renewed pushback against the EU’s environmental agenda.
The palm oil price increased by 0.04% when the ringgit (palm's trade currency) was compared to the U.S. Dollar.
The oil prices dropped on Friday as signs indicated that China, the largest crude importer in the world, is still struggling to recover from its economic slowdown.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
Technical analyst Wang Tao believes that palm oil could revisit its low of 4,826 Ringgit per ton on Nov. 14, as its correction from 5,205 Ringgit appears incomplete.
(source: Reuters)
