JAKARTA: Malaysian palm oil futures closed lower on Friday on profit-taking and cautious trading ahead of a major industry conference in Kuala Lumpur next week, although the contract posted gains for the week.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was down 6 ringgit, or 0.15%, at 3,964 ringgit ($835.67) per metric ton at close. The contract gained 2.88% for the week.
“Weekend profit-taking after the hefty gains yesterday and cautious trading ahead of the Price Outlook Conference and Exhibition (POC) next week kept the market mostly stagnant,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
Traders were also cognizant of lower February production and exports and their impact on stocks. The POC presentation and analysis will offer more clues in guiding prices, he added.
The soyoil contract on the Dalian Commodity Exchange was up 1.58%, while its palm oil contract added 1.59%. Soyoil prices on the Chicago Board of Trade increased 0.82%.
Palm ends higher on rival oils while traders await major industry conference
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for February fell 14% to 1,106,054 metric tons from January, cargo surveyor Intertek Testing Services said.
According to independent inspection company AmSpec Agri Malaysia, exports fell 18.5% to 1,000,348 tons from January.
Cargo surveyor Societe Generale de Surveillance (SGS) estimates that exports of Malaysian palm oil products for February totalled 996,845 metric tons, according to LSEG.
Indonesia plans to lower its crude palm oil reference price for March 1-31 to $798.90, while maintaining the export tax at $33 per ton and the levy at $85.
Indonesia’s palm oil output this year is projected to increase 5% year-on-year to 57.6 million tons, while exports are expected to stagnate at 32-33 million tons, the Indonesia Palm Oil Association said.
Oil prices increased and were set to end the week with modest gains as talks of a potential ceasefire in Gaza turned more complex following the deaths of more than 100 Palestinians.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Source: Brecorder
