Malaysian palm oil spent time reversing the initial loss to end higher on Friday, and record the second weekly profits in succession, as a stronger rival, Chicago Soyoil and weaker market uncertainty over the currency over Indonesia’s export level and the threat of tariffs US.
Benchmark Palm Oil Contract FCPO1! For April delivery in the Malaysia Derivatives Exchange, 11 ringgit, or 0.26%, higher at 4,290 ringgit ($ 964.04) per metric ton. The contract rose 1.76% this week after an increase of 0.62% last week.
The possibility of a 9% to 10% reduction in the export of Indonesian palm oil exports and the threat of US President Donald Trump in Canada and Mexico has caused market uncertainty, said Paramalingam Supramaniam, Director of Brokers based in Selangor Bestari protector.
Chinese holidays and weaker Malaysian palm oil exports, coupled with recovery of production last month, provide further concerns, said Anilkumar Bagani, Head of Commodity Research in Sunvin Group based in Mumbai.
The market is now waiting for export data and Malaysian palm oil production for January, Bagani said.
The export of Malaysian palm oil products for January is estimated to have dropped between 12.3% and 20.1% from a month ago, according to the Surveyor Kargo Intertek Testing Services and Independent Inspection Companies AMSSPEC AGRI Malaysia.
Soyoil’s price at the Chicago ZL1 Trade Council! up 1.29%. Dalian Commodity Exchange closed from January 28 to February 4 for the Chinese New Year holiday.
Palm oil tracks the movement of edible oil prices, because they compete to get the global vegetable oil market share.
Ringgit USDMYR, the Palm trade currency, weakened 1.41% of the dollar, making commodities cheaper for buyers who hold foreign currencies.
Oil prices are stable on Friday but at this time to decline weekly because the market is waiting to see whether US President Donald Trump follows up his threat to impose tariffs in Mexico and Canada this weekend.
Crude oil that is stronger in futures makes the palm of the hand a more attractive choice for biodiesel raw materials.
Source: Reuters
