KUALA LUMPUR: Malaysian palm oil futures rose for a fifth consecutive session and were on track for a weekly gain on Friday, tracking stronger performances in rival Dalian oils.
BPalm rises on bargain buying, stronger Dalian oils
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 91 ringgit, or 1.86%, to 4,976 ringgit ($1,122.49) a metric ton in early trade.
The contract has so far gained 5.23% this week after falling for the past two consecutive weeks.
Fundamentals
Dalian’s most-active soyoil contract rose 1.41%, while its palm oil contract added 2.14%. The Chicago Board of Trade was closed for the Thanksgiving holiday.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Cargo surveyors are expected to release their estimates for Malaysian palm oil exports for the Nov. 1-30 period on Saturday.
Oil prices were mixed following a potential renewal of supply risk as Israel and Hezbollah traded accusations of ceasefire violations, and as a delay to an OPEC+ meeting left investors awaiting a decision on its output policy.
Brent crude futures for January were down 0.1% at $73.21 a barrel, as of 0245 GMT.
The ringgit, palm’s currency of trade, strengthened 0.25% against the dollar, making the commodity more expensive for holders of foreign currencies.
Palm oil may test resistance at 4,917 ringgit per metric ton, a break above could open the way towards 4,985 ringgit, Reuters technical analyst Wang Tao said.
Source: Brecorder
