Palm climbs on strong export estimates, poised for second weekly gain

By Reuters News

JAKARTA, Oct 16 (Reuters) - Malaysian palm oil futures inched higher on Friday, supported by cargo surveyor estimates showing robust export demand in the first half of October, and were on track for a second consecutive weekly gain.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 5 ringgit, or 0.11%, to 4,730 ringgit ($1,159.03) a metric ton in early trade. The contract has gained 3.09% so far this week.

FUNDAMENTALS

  • Cargo surveyors estimated that exports of Malaysian palm oil products during October 1-15 jumped between 43.2% and 58.3% from a month earlier.

  • Dalian's most-active soyoil contract fell 1.29%, while its palm oil contract slipped 1.43%. Soyoil prices on the Chicago Board of Trade were down 0.39%.

  • Palm oil tracks rival edible oils, as it competes for a share of the global vegetable oils market.

  • The ringgit , palm's currency of trade, weakened 0.02% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

  • India's palm oil imports in September rose 4.5% from August to 817,884 tons, the Solvent Extractors' Association of India said on Thursday.

  • Malaysia lowered its November crude palm oil reference price, keeping the export duty at 10%, a circular on the Malaysian Palm Oil Board website showed on Wednesday.

  • Oil prices edged down on Friday as investors weighed Middle East risks and possible US steps to ease restrictions on the world's "shadow fleet" of tankers.O/R

  • Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

  • Palm oil may retest a resistance at 4,732 ringgit per ton, a break above which could open the way towards the 4,766-4,799 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

Asian stocks rebounded on Friday following heavy selling in the previous session when investors dumped tech shares as questions about cloud company CoreWeave's debt pile fuelled worries about the financing driving the AI boom.MKTS/GLOB


DATA/EVENTS

0500 Japan Chain Store Sales YY Sep

0900 EU Total Trade Balance SA Aug

0900 EU HICP Final MM, YY Sep

1230 US Import Prices YY Sep

1315 US Industrial Production MM Sep


($1 = 4.0810 ringgit)


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