Palm closes lower but logs second weekly gain

Malaysian palm oil futures finished Friday lower, with the October contract on Bursa Malaysia Derivatives Exchange dropping 13 ringgit, or 0.28%, to 4,711 ringgit ($1,153.53) per metric ton, according to Business Recorder. Even so, the contract gained 0.73% over the week, its second straight weekly rise. David Ng of Iceberg X Sdn Bhd blamed higher end-July stocks and weaker Chicago soyoil for the decline, while El Niño weather concerns and higher energy prices limited the losses.

Malaysian Palm Oil Board data released on Monday showed stockpiles climbed to a five-month peak in July, as output stayed ahead of rising export demand. Dalian's most-active soyoil gained 1.04% and its palm oil contract rose 1.43%, while soyoil on the Chicago Board of Trade slipped 0.37%. Crude oil also firmed toward a weekly gain after Washington threatened an open-ended naval blockade of Iran, and higher crude makes palm more attractive as biodiesel feedstock.

Edible oil imports into India climbed to a 10-month high in July, as refiners bought more palm and soyoil to rebuild inventories before the festival season, the Solvent Extractors' Association of India said. Separately, Indonesian President Prabowo Subianto said a new state export firm will track major commodity shipments but will not take control of exports. A bourse covering minerals and strategic commodities is due to begin on January 1 next year, and it will publish reference prices for Indonesia's core goods.