Malaysian palm oil higher

Malaysian palm oil futures reversed early losses to end higher on Friday, and logged a second consecutive weekly gain, as stronger rival Chicago soyoil and a weaker currency offset market uncertainty over Indonesia’s export rates and US tariff threats.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed 11 ringgit, or 0.26%, higher at 4,290 ringgit ($964.04) a metric ton. The contract gained 1.76% this week after a 0.62% rise last week.

The possibility of a 9% to 10% reduction in Indonesian crude palm oil export levies and US President Donald Trump’s threat of tariffs on Canada and Mexico have caused market uncertainty, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. China holiday and weaker Malaysian palm oil exports, coupled with a production recovery last month, provided further concerns, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin group.

The market is now awaiting Malaysian palm oil export and production data for January, Bagani said. Exports of Malaysian palm oil products for January are estimated to have fallen between 12.3% and 20.1% from a month ago, according to cargo surveyors Intertek Testing Services and independent inspection company AmSpec Agri Malaysia. Soyoil prices on the Chicago Board of Trade were up 1.29%.

Tags: Malaysia, palm oil, futures, benchmark contract, soyoil