VEGOILS-Palm set for weekly gain amid anticipation of major conference inputs

Credit: REUTERS/STAFF

By Dewi Kurniawati

JAKARTA, March 1 (Reuters) - Malaysian palm oil futures traded up on Friday, and were set for a weekly gain, tracking strength in rival vegetable oils, and anticipating new inputs from a major industry conference due to be held in Kuala Lumpur next week.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange was up 5 ringgit, or 0.13%, at 3,975 ringgit ($839.32) per metric ton by the midday break. The futures have gained 3.17% so far this week.

"Palm is tracking external strength on Dalian and Chicago soyoil, while anticipating new inputs from the Price Outlook Conference and Exhibition (POC) next week," a Kuala Lumpur-based trader said.

The soyoil contract on the Dalian Commodity Exchange DBYcv1 was up 1.37%, while its palm oil contract DCPcv1added 1.29%. Soyoil prices on the Chicago Board of Trade BOc2increased 0.38%.

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

Exports of Malaysian palm oil products for February fell 14% to 1,106,054 metric tons from the 1,286,509 metric tons shipped in January, cargo surveyor Intertek Testing Services said on Thursday.

According to independent inspection company AmSpec Agri Malaysia, exports fell 18.5% to 1,000,348 tons from 1,227,101 tons shipped during January.

Indonesia plans to lower its crude palm oil reference price for the March 1-31 period to $798.90, while maintaining the export tax at $33 per ton and and the levy at $85.

Indonesia's palm oil output this year is projected to increase 5% year-on-year to 57.6 million tons, while exports are expected to stagnate at 32-33 million tons, the Indonesia Palm Oil Association said.

Oil prices increased and were set to end the week with modest gains, as talks of a potential ceasefire in Gaza turned more complexfollowing the deaths of more than 100 Palestinians while awaiting an aid delivery. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

($1 = 4.7360 ringgit)

(Reporting by Dewi Kurniawati; Editing by Sherry Jacob-Phillips and Dhanya Ann Thoppil)

((Dewi.Kurniawati@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.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.