Palm ended lower, posting its second weekly loss
Malaysian palm oil futures extended their decline and posted a second weekly loss on Friday, with the market remaining range-bound while looking for direction.
FCPO1 palm oil benchmark contract! for January delivery on the Bursa Malaysia Derivatives Exchange lost 51 ringgit, or 1.14%, to 4,420 ringgit ($1,046.40) per metric ton at the close.
Futures lost 2.06% this week.
“Futures trading today are still around 4,400 to 4,500 ringgit while waiting for new clues,” said a Kuala Lumpur-based trader.
Dalian’s most active soybean oil contract (DBYcv1) fell 0.15%, while the palm oil contract CPO1! rose 0.09%. Soybean oil price on the Chicago Board of Trade ZL1! down 0.35%.
Palm oil follows the price movements of its rival vegetable oils as it competes for a share of the global vegetable oil market.
Oil prices were little changed on Friday, steadying after the previous day’s surge and remaining on track for weekly gains as new US sanctions on Russia’s two biggest oil companies over the war in Ukraine fueled supply concerns.
Weaker crude oil futures make palm oil a less attractive option for biodiesel feedstock.
The USDMYR ringgit, the palm oil trading currency, strengthened 0.14% against the dollar. A stronger ringgit makes those commodities more expensive for buyers holding foreign currency.
Source: Reuters
