Palm oil ends with second consecutive weekly drop

Malaysian palm oil futures closed higher on Friday due to similar trends in rival oils, despite the ringgit's strength limiting the increase. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange rose 1.21% to 3,917 ringgit ($871.41) a metric ton. The ringgit's strength, making palm oil less attractive for foreign currency holders, and India's increased palm and soybean oil imports contributed to the market's dynamics. Indonesia's biodiesel consumption reached 6.12 million kilolitres in the first half of 2024, and changes to the country's domestic market obligation rules for palm oil are not expected to impact the DMO export ratio. Malaysian palm oil exports are projected to rise significantly in July.

Malaysian palm oil futures closed higher on Friday tracking rival oils, although the ringgit’s persistentstrength capped the upside momentum. The contract fell 0.63%this week, a second consecutive weekly drop. The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 47 ringgit, or 1.21%,to 3,917 ringgit ($871.41) a metric ton on the closing. “Signs of recovery in Dalian palm olein and Chicago’s soyoil have lifted the futures today. Nonetheless, the persistentstrength of the ringgithas capped the upside momentum,” a Kuala Lumpur-based trader said. The ringgit, palm’s currency of trade, strengthened 1.58% against the U.S. dollar, making the vegetable oil less attractive for foreign currency holders. Dalian’s most-active soyoil contract DBYcv1 rose 0.82% higher, while its palm oil contract DCPcv1 gained 2.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.99%. Palm oil tracks price movements of rival edible oils, as ...