Palm oil surges 3pc ahead of key data, logs second weekly decline
12.06.2023 (Business Recorder) - KUALA LUMPUR: Malaysian palm oil futures jumped more than 3 percent on Friday, rebounding from the previous session as traders covered positions ahead of several key reports, although the contract logged a second weekly decline.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 106 ringgit, or 3.25%, at 3,370 ringgit ($730.70) a metric ton.
For the week, the contract slipped 0.41% in anticipation of rising production and inventories.
Investors are awaiting Malaysian Palm Oil Board data due on Monday to assess the extent of a climb in May production.
Malaysia’s palm oil production in May is seen rocketing 21% to 1.45 million metric tons, the highest level since last December, a Reuters survey showed on Tuesday.
The market will also be keeping watch on the US Agriculture Department’s World Agricultural Supply and Demand Estimates report due later on Friday, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
US soybean end-stocks are expected to increase while another round of cuts is expected for Argentina’s old crop soybean output, he added.
Dalian’s most-active soyoil contract gained 2.8% while its palm oil contract rose 2.9%. Soyoil prices on the Chicago Board of Trade rose 0.2%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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