Palm oil prices ended trading higher on Friday

According to David Ng, a trader at Iceberg X in Kuala Lumpur, palm oil prices rose, supported by stronger crude and soybean oil prices. Ng sees support for palm oil at 4,300 ringgit per tonne and resistance at 4,500 ringgit per tonne. He also said strong gains in the US stock market are supporting sentiment.

Malaysian palm oil futures ended higher on Friday, supported by stronger crude oil prices, although the contract posted its third consecutive weekly decline.

The benchmark FCPO1 palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rose 24 ringgit, or 0.55%, to close at 4,417 ringgit (US$1,119) per metric tonne.

The contract fell 1.95% this week.

Sluggish demand in key markets, weakening prices for competing oils, and continued uncertainty over mandatory biodiesel use in Indonesia weighed on the market this week.

A Kuala Lumpur trader cited the fact that oil prices remained above $100 overnight, and the bullish momentum continued into the morning Asian trading session, as the reason for Friday’s rise.

Oil prices rose more than 3% after US President Donald Trump said his patience with Iran was running out, fueling concerns about the lack of progress on a peace deal aimed at ending attacks on ships and seizures in the Strait of Hormuz.

Strengthening oil futures makes palm oil a more attractive biodiesel feedstock option.

The most active soybean oil contract in Dalian fell 1.33%, while the CPO1 palm oil contract fell 0.63%. Soybean oil prices on the Chicago Mercantile Exchange rose 0.41%.

Palm oil prices are tracking those of competing edible oils as they compete for market share in the global vegetable oil market.

According to shipping experts, Malaysian palm oil exports from May 1 to 15 fell by 1.6% to 16.5% compared to the previous month.

Malaysian Palm Oil Exports from May 1-15 Compared to April 1-15 (Metric Tons)

ITS: 600,175 vs. 609,868 (-9,693 or -1.59%)

AMSPEC: 502,228 vs. 601,401 (-99,173 or -16.49%)

The ringgit weakened 0.43% against the dollar, making this commodity slightly cheaper for buyers holding foreign currency.

Tags: palm oil, prices