Palm rises but poised to snap three-week winning streak

Palm oil futures traded higher in Kuala Lumpur on Friday, with the November contract on the Bursa Malaysia Derivatives Exchange climbing 43 ringgit, or 0.89%, to 4,859 ringgit ($1,206.61) a metric ton at midday. Business Recorder noted the contract has shed 3.41% so far this week, though it still appears set to end three consecutive weeks of gains. Firmer soyoil prices and worries about future output supported the move.

Iceberg X Sdn Bhd trader David Ng attributed the gains to palm following soyoil and to medium-term output worries. He placed support above 4,800 ringgit, with resistance seen near 4,950 ringgit. In Dalian, the most-active soyoil contract firmed 1.27%, while the palm oil contract gained 0.49%. Soyoil on the Chicago Board of Trade rose 2.31%, and palm competes with rival edible oils for market share worldwide.

Crude oil futures slipped and are poised to end a two-week rally, after a prior-session gain that followed a report that US President Donald Trump is not keen on reviving earlier Iran deal terms. Lower crude makes palm a less attractive biodiesel feedstock. The ringgit, the currency palm trades in, gained 0.1% against the dollar, making the commodity marginally dearer for buyers using other currencies.