COMMODITIES(B-Trams):Palm oil futures gains more than 3% today, As tracking an overnight rally in prices of rival edible oils, although the contract was on course for a second weekly decline.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gains 118 ringgit, or 3.62%, to 3,382 ringgit ($733.62) a metric ton by the midday break.
For the week, the contract has slipped 0.03% so far in anticipation of rising production and inventories.
Investors are awaiting Malaysian Palm Oil Board data due on Monday to assess the extent of a climb in May production.
Malaysia’s palm oil production in May is seen rocketing 21% to 1.45 million metric ton, the highest level since last December, a Reuters survey shows on Tuesday.
Indonesia sees the European Union as conducting “regulatory imperialism” with its new deforestation law, but both sides would still engage in talks on a free trade deal, an Indonesian minister said on Thursday.
While China reportedly increased its purchases of tropical oil in May, as it tried to replenish its stockpiles ahead of the peak consumption season. For the week, and, the contract was on course for a second weekly drop, with signs of rising production and inventories growing. Investors now await Malaysian Palm Oil Board data due Monday to study the extent of a rise in May production.
In related oils, Dalian’s most-active soyoil contract gains 2.6% while its palm oils contract rose 3.4%. Soyoil prices on the Chicago Board of Trade ease after surging 4% overnight.
However, Palm oils is affects by price movements in relate rival oils as they compete for a share in the global vegetable oils market.
The market will be keeping watch on the US Agriculture Department’s World Agricultural Supply and Demand Estimates report due later on Friday, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
US soybean end-stocks are expects to increase while another round of cuts is expects for Argentina’s old crop soybean output.
In the conclusion Palm oil is only affects by price movements in relate rival oils as they compete for a share in the global vegetable oils market but we have to watch the US Agriculture Department Report will publish today for estimating the demand, supply and production. however palm will trading in ranges of 3,200 – 3,700 ringgit.