Business Recorder
KUALA LUMPUR: Malaysian palm oil futures rose on Friday, and were headed for a fifth straight weekly gain, lifted by expectations of lower inventories, Indonesia’s B50 biodiesel plans and heightened Middle East tensions. The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 25 ringgit, or 0.52%, to 4,816 ringgit ($1,194.44) a metric ton by the midday break. It has gained 3.76% so far this week. Lower March-end stocks in Malaysia, the possibility of Indonesia implementing its B50 biodiesel mandate, highly volatile crude oil prices and uncertaintysurrounding US President Donald Trump’s policies have kept prices elevated, said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading company. Some buyers have also begun to re-enter the market after a prolonged wait, although prices above 4,900 ringgit are seen as too expensive, he added. The Malaysian Palm Oil Board (MPOB) is scheduled to release its March supply and demand data on April 10. Oil prices surgedovernight, with US crude settling more than 11% higher and Brent jumping nearly 8% on Thursday in volatile trade. Oil markets are closed on Friday for a public holiday. Dalian’s most-active soyoil contract rose 0.28%, while its palm oil contract gained 0.34%. The Chicago Board of Trade was closed for a public holiday. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. The ringgit, palm’s currency of trade, firmed 0.1% against the dollar, making the commodity more expensive for buyers holding foreign currencies. India’s palm oil imports fell nearly 19% to a three-month low in March, as a rally in tropical oil prices, tracking energy markets, prompted refiners to curb purchases while awaiting a correction, five dealers said.
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