Palm rises on firmer Dalian oils, weak ringgit, but set for second weekly loss

Malaysian palm oil futures opened higher on Friday for a second straight session, supported by stronger rival Dalian oils and a weak ringgit.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained RM47, or 1.24 per cent, to RM3,848 (US$890.74) a metric ton in early trade.

The contract has lost 1.19 per cent so far this week and is poised to log a second consecutive weekly decline.

Dalian’s most-active soyoil contract rose 1.21 per cent, while its palm oil contract added 1.32 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) eased 0.08 per cent.

Palm oil tracks prices of rival edible oils as it competes for a share of the global vegetable oils market.

The ringgit, palm’s currency of trade, weakened 1.01 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Oil prices were little changed after rising more than 3 per cent on Thursday, as trade tensions between top oil consumers US and China showed signs of easing and Britain announced a “breakthrough” trade deal with the United States.

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

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