JAKARTA: Malaysian palm oil futures fell on Friday, snapping two straight session of gains, tracking weak soyoil in Dalian and Chicago markets but were headed for their first weekly gain in five weeks.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange lost 25 ringgit, or 0.65%, to 3,810 ringgit ($869.66)a metric ton by 0231 GMT.
Malaysian palm oil futures rise on Dalian strength, Indonesia biodiesel plan
For the week the contract has gained 3.26%, its biggest weekly gain since May-end.
Fundamentals
Dalian’s palm oil contract gained 0.52%, while the most-active soyoil contract was down 0.24%. Soyoil prices on the Chicago Board of Trade fell 0.4%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Indonesia plans to implement biodiesel with a mandatory 40% blend of palm oil-based fuel from Jan. 1 next year, a senior energy ministry official said.
Exports of Malaysian palm oil products for Aug. 1-20 fell between 16.7% and 18.4% from a month earlier, data from cargo surveyors Societe Generale de Surveillance (SGS), Intertek Testing Services and AmSpec Agri Malaysia showed.
Palm oil FCPOc3 may retest resistance of 3,833 ringgit per metric ton, a break above which could confirm a target range of 3,862 ringgit to 3,880 ringgit, Reuters technical analyst Wang Tao said. Reuters
Source: Brecorder
