Palm tick up on stronger soyoil; still set to snap two-week decline

Malaysian palm oil futures rose slightly on Friday, putting the market on course for its first weekly advance in three weeks, according to Business Recorder. The October contract, listed on the Bursa Malaysia Derivatives Exchange, gained 5 ringgit, or 0.11%, to 4,666 ringgit ($1,141.95) per metric ton at midday, and it has risen 3.55% during the week so far. Firmer soyoil values offset worries about growing inventories.

Iceberg X trader David Ng said Thursday's rebound and firmer soybean oil prices were giving the market support, although high stock levels ahead of the MPOB report could cap further advances. A Reuters survey expects Malaysia's palm oil inventories to reach an all-time record in September, above the December 2018 peak, as output surged to record volumes while export demand stayed weak. MPOB is due to publish its figures on Monday.

Elsewhere, the most active soyoil contract in Dalian moved up 0.86%, and the Dalian palm oil contract rose 1.07%, while Chicago soyoil ticked up 0.21%. Crude prices softened as worries over Middle East supply lessened, following a statement by US President Donald Trump that Iran would not be attacked before the midterm elections next month. Weaker crude makes palm less attractive as a biodiesel feedstock. The ringgit, the currency palm is traded in, gained 0.05% versus the dollar, leaving overseas buyers paying a little more.