KUALA LUMPUR (Aug 24): Malaysian palm oil futures ended Friday marginally higher, averting a third straight session of declines, supported by a technical correction and strength in US soyoil prices.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was 0.05% up at RM2,219 (US$540.56) a tonne but down 0.85% on the week for a second consecutive weekly fall.
Trading volumes stood at 23,776 lots of 25 tonnes each.
"The palm market is reacting to stronger bean oil prices during Asian hours," said a Kuala Lumpur-based futures trader, referring to soyoil on the Chicago Board of Trade.
Palm oil prices are affected by movements of other edible oils that compete in the global vegetable oils market.
Market sentiment remained muted, however, on rumoured declines in exports, traders said.
Palm fell more than 1% on Thursday after data released by the Malaysian Palm Oil Association showed a 13.8% increase in production for the Aug 1-20 period.
"The market rose today on a technical rebound after Thursday's sharp drop, but the outlook is poorer on concern about production and rumours of a fall in exports," said another trader, adding that the market had expected a less than 10% rise in output.
Palm oil output in Malaysia, the world's second-largest producer, typically rises in the third and fourth quarters of the year in line with the seasonal trend.
In related oils, the Chicago December soybean oil contract rose 0.4% on Friday.
The January soybean oil contract on China's Dalian Commodity Exchange dipped by 0.03%, while the Dalian January palm oil contract was down 0.4%.
Palm, soy and crude oil prices at 1126 GMT
|MY PALM OIL||SEP8||2178||-5.00||2178||2197||335|
|MY PALM OIL||OCT8||2197||-1.00||2197||2215||2007|
|MY PALM OIL||NOV8||2218||+1.00||2218||2235||11775|
|CHINA PALM OLEIN||JAN9||4918||-28.00||4904||4962||362600|
|CBOT SOY OIL||DEC8||28.49||+0.13||28.34||28.55||6656|
|INDIA PALM OIL||AUG8||594.50||-0.80||593.80||596.3||414|
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
(US$1 = 70.0975 Indian rupees)
(US$1 = 6.8868 Chinese yuan)
(US$1 = RM4.1050)