Palm ends higher on El Nino worries; logs weekly gain

Malaysian palm oil futures ended higher on Friday and posted a weekly gain, according to Business Recorder. The benchmark November contract on the Bursa Malaysia Derivatives Exchange rose 27 ringgit, or 0.55%, to close at 4,931 ringgit ($1,220.24) per metric ton. For the week, the contract added 0.76%, reversing the previous week's losses.

Trader David Ng of Iceberg X Sdn Bhd said the gains reflected lingering concern about medium-term output, as El Niño weather affects both Malaysia and Indonesia. Elsewhere, Dalian's most-active soyoil contract slipped 0.19% and its palm oil contract lost 0.39%, while soyoil on the Chicago Board of Trade dropped 0.46%. Palm usually tracks rival edible oils, since both compete for a slice of worldwide vegetable oil demand.

Crude oil eased but remained on course for a weekly gain as rising U.S.-Iran tensions raised Middle East supply worries. Softer crude makes palm a less attractive feedstock for biodiesel. Indonesia's plan to set up a new commodities exchange may find it hard to compete with established bourses and could backfire if participation becomes mandatory. Agrinas Palma Nusantara, a state-owned plantation firm, expects to produce 1.5 million tons of palm oil next year, chief executive Mohammad Abdul Ghani said.