JAKARTA:After four days of gains, Malaysian palm oil futures prices fell on Friday as profit-booking and a stronger ringgit weighed on prices. However, the benchmark contract set for a weekly rise due to concerns about output.
By midday, the benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange had lost some of its gains of 7.67% over the previous four days, falling 1.72 percent to 3,723 ringgit ($845.18).
The contract is up 6% for the week thus far, but it is on track to lose money monthly. A trader based in Kuala Lumpur state that Palm oil futures prices dropped due to “weekend profit-taking, external markets gradually easing, and a firmer ringgit.”
The trader added that the drop could cushioned by expectations of higher exports.
Data on March exports is expected to released by cargo surveyors later on Friday.
Analysts stated that a miller’s association estimated a 22.9% decline in production from March 1 to 25 in Malaysia’s palm oil output.
After gaining as much as 2.06% earlier in the session, Dalian’s most active soyoil contract trading 1.09% higher, while its palm oil contract was up 0.45%.
Soyoil prices on the Chicago Board of Trade decreased by 0.53 percent, causing palm oil to rise for the fourth day in a row.
As they compete for a share of the global market for vegetable oils, palm oil is affect by changes in the prices of related oils. On Friday, the Malaysian ringgit gained 0.29 percent against the US dollar.
The palm contract, which is trade in a stronger ringgit, may cost more to holders of dollars.
Palm oil might stretch out gains to 3,853 ringgit for every ton, to finish a bob from 3,500 ringgit, Reuters specialized investigator Wang Tao said.