VEGOILS - Palm ends the week with a loss. Malaysia data is being eyed
Malaysian palm oil posted a loss for the week on Friday. The market will be expecting next week's data from the Malaysian Palm Oil Board (MPOB).
The benchmark palm-oil contract for delivery in November on the Bursa Derivatives Exchange fell 16 ringgit (0.41%) to close at $3,901 ringgit ($901.34) per metric ton.
This week, the contract's value has dropped by 1.91%.
A Kuala Lumpur based trader stated that "the futures appear to be trading within a range of 3,850-3.950 ringgit while waiting for next week's MPOB report."
The MPOB will release its monthly palmoil data on Tuesday, September 10.
A survey of 14 traders and planters revealed that Malaysian palm oil inventories were expected to be at a six-month-high of 1,86 million metric tonnes by the end of August due to low export demand.
Dalian's palm oil contract rose by 0.54%, while the most active soyoil contract increased by 0.03%. Chicago Board of Trade fell by 0.39%.
As they compete to gain a share in the global vegetable oil market, palm oil monitors price movements of related oils.
Indonesia, which is the world's largest palm oil exporter plans to reduce export duties in order to increase competitiveness and farmers' income.
The Malaysian Ringgit, the palm oil's trade currency, increased by 0.13% in value against the US dollar. Palm oil becomes less appealing to foreign currency holders when the ringgit is stronger.
Investors weighed a large U.S. crude inventory withdrawal, a delayed production increase by OPEC+ producers and mixed U.S. job data to determine the oil price trend.
Palm oil is a better option as a biodiesel feedstock due to the stronger crude oil futures. $1 = 4.3280 Ringgit (Reporting and editing by Savio d'Souza; Dewi Kurniawati)
(source: Reuters)
