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


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)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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