JAKARTA: Malaysian palm oil futures were set on Friday for a weekly jump as prices rose for a second straight session buoyed by signs of a pickup in demand from key buyers and also tracking gains in rival Dalian oils.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange had climbed 3.35% to 4,407 ringgit ($993.24) per tonne by the midday break.
It has gained about 13.6% so far this week, rebounding from the previous week’s 9.6% drop.
“The market is still optimistic about demand,” a trader in Kuala Lumpur said, referring to growth in exports to main markets such as China, India and the European Union in the first 10 days of August Exports of Malaysian palm oil products for Aug. 1-10 rose about 10% monthly, cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia said this week.
Palm rises on firmer rivals, August export data
Meanwhile, stronger vegetable oil prices on China’s Dalian exchange also lent support to Malaysian palm oil prices. Dalian’s most-active soyoil contract was up 0.76%, while its palm oil contract rose 2.18%.
Soyoil prices on the Chicago Board of Trade were down 0.27%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may rise to 4,452 ringgit, as it has more or less broken a resistance at 4,269 ringgit per tonne, Reuters technical analyst Wang Tao said.