Palm rises on demand revival, on track to snap two-week losing streak
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 42 ringgit, or 0.99%, to 4,282 ringgit ($1,011.58) a metric ton at the midday break. The contract has risen 0.92% so far this week.
Some demand looks to be returning in August for both crude palm oil and refined products, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari.
'Overall, I believe demand in August should be a bit higher than July,' he said.
Cargo surveyors are expected to release their August 1-10 export estimates on Monday.
Dalian's most active soyoil contract fell 0.12%, while its palm oil contract added 0.65%. Soyoil prices on the Chicago Board of Trade were down 0.15%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices were little changed during early Asian hours, but were headed for their steepest weekly losses since late-June, as investors expressed concern over the impact to the global economy from tariffs that kicked into effect on Thursday.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.07% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Palm oil may retest resistance at 4,312 ringgit per metric ton, a break above which could lead to a gain into 4,344 ringgit to 4,374 ringgit range, Reuters technical analyst Wang Tao said.
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