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Sunday, February 25, 2024

Palm oil ends week lower on stronger ringgit

JAKARTA: Malaysian palm oil futures fell on Friday and posted a weekly decline, dragged by a stronger ringgit and weakness in rival edible oils.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange fell 23 ringgit, or 0.57% to 4,003 ringgit ($879.20) at the closing price. For the week, the contract was down 0.79%.

“FCPO prices traded in negative territory on Friday as competitive vegetable oil showed signs of weakness. CBOT soybean oil and Dalian palm olein have profit taking activities ahead of the weekend,” a Kuala Lumpur-based trader said.

Dalian’s most-active soyoil contract was down 0.53%, while its palm oil contract also shed 1.57%. Soyoil prices on the Chicago Board of Trade rose slightly to 0.1%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

The Malaysian ringgit, palm oil’s currency of trade, appreciated 0.77% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.

Malaysia’s palm oil exports during July 1-25 rose 10.8% from the month before, according to AmSpec Agri Malaysia, while data from cargo surveyor Intertek Testing Services this week showed a 17.8% rise in exports for the same period.

Palm oil may keep falling towards 3,846 ringgit per metric ton as it has broken a support at 3,999 ringgit, said Reuters technical analyst Wang Tao.

Palm oil ends week lower on stronger ringgit

Source: Brecorder

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