Palm logs third weekly gain despite Chicago soyoil drag
KUALA LUMPUR: Malaysian palm oil futures logged a third straight weekly gain, though the market retreated on Friday as it was weighed down by weaker rival Chicago soyoil.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 54 ringgit, or 1.37%, to 3,878 ringgit ($911.83) a metric ton at the close.
The contract gained 1.33% this week.
Crude palm oil futures traded lower tracking weakness in the Chicago soybean oil market, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
'We identify support at 3,800 ringgit and resistance at 3,950 ringgit,' he said.
Dalian's most-active soyoil contract fell 0.86%, while its palm oil contract lost 0.89%. Soyoil prices on the Chicago Board of Trade were down 1.74%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Palm edge higher despite expectations of higher output, stock levels
Oil prices were stable on Friday, but on track for a second consecutive weekly decline, pressured by expectations of another OPEC+ output hike and uncertainty about U.S. tariffs after the latest legal twist kept them in place.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.31% against the U.S dollar, making the commodity cheaper for buyers holding foreign currencies.
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