JAKARTA: Malaysian palm oil futures climbed on Friday, supported by bargain buying and strong export demand as cargo surveyors reported higher shipments in the first half of October.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 44 ringgit, or 0.93%, to 4,769 ringgit ($1,169.16) a metric ton at the close. The futures posted a 3.85% weekly gain.
India’s palm oil imports in September jumped to a seven-month high as refiners favoured it over sunflower oil.
“The CPO futures were seen trading higher today on some bargain buying. Additionally, stronger Malaysian palm oil export for first half of October has also helped,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Cargo surveyors estimated that exports of Malaysian palm oil products during October 1-15 jumped between 43.2% and 58.3% from a month earlier.
Dalian’s most-active soyoil contract fell 0.86%, while its palm oil contract slipped 0.96%. Soyoil prices on the Chicago Board of Trade were down 0.54%.
Palm oil tracks rival edible oils, as it competes for a share of the global vegetable oils market.
The ringgit, palm’s currency of trade, weakened 0.05% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Malaysia lowered its November crude palm oil reference price, keeping the export duty at 10%, a circular on the Malaysian Palm Oil Board website showed on Wednesday.
Crude oil prices eased on Friday but were heading for weekly gains on uncertainty over Middle East supplies and a larger-than-expected draw from US crude stockpiles. European diesel margins dropped following the IEA’s decision to release more stock.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.