Credit: REUTERS/Samsul SaidKUALA LUMPUR, June 9 (Reuters) - Malaysian palm oil futures jumped nearly 4% on Friday, tracking an overnight surge in prices of rival edible oils, although the contract was on course for a second weekly decline.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 126 ringgit, or 3.86%, to 3,390 ringgit ($735.36) a ton during early trade.
For the week, the contract has slipped 0.39% so far in anticipation of rising production and inventories.
FUNDAMENTALS
* Investors are awaiting Malaysian Palm Oil Board data due on Monday to assess the extent of a climb in May production.
* Malaysia's palm oil production in May is seen rocketing 21% to 1.45 million ton, the highest level since last December, a Reuters survey showed on Tuesday.
* Indonesia sees the European Union as conducting "regulatory imperialism" with its new deforestation law, but both sides would still engage in talks on a free trade deal, an Indonesian minister said on Thursday.
* Dalian's most-active soyoil contract DBYcv1 gained 2.6% while its palm oil contract DCPcv1 rose 3.4%. Soyoil prices on the Chicago Board of Trade BOcv1 eased after surging 4% overnight.
* 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 test a resistance zone of 3,341 ringgit to 3,368 ringgit per metric ton, a break above could lead to a gain into a zone of 3,394 ringgit to 3,432 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asia-Pacific equities rose to their highest level since mid-February, taking cues from an overnight Wall Street rally as market bets firmed for the Federal Reserve to skip a rate hike next week. MKTS/GLOB
DATA/EVENTS (GMT)
0130 China PPI, CPI YY May
($1 = 4.6100 ringgit)
(Reporting by Mei Mei Chu;)
((Meifong.chu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
