Palm little changed, set for first weekly gain in three
Malaysian palm oil futures traded in a tight range on Friday, as the ringgit recovered and participants awaited export data, although the benchmark contract was on track to post its first weekly gain in three.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange was unchanged at 4,040 ringgit ($907.05)per tonne by midday.
“The market is sideways with a downside bias, as the ringgit continues to strengthen. Negative margins in destination is also keeping buyers at bay,” a Kuala Lumpur-based trader said.
The Malaysian ringgit gained for third straight session and hit its highest level in more than three months on Friday. A stronger ringgit makes palm oil less attractive for holders of foreign currencies.
Dalian’s most-active soyoil contract DBYv1 gained 1.58%, while its palm oil contract DCPv1 rose 0.93%. The Chicago Board of Trade was closed for the Thanksgiving holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may test a support zone of 3,994-4,019 ringgit a tonne, a break below which could open the way towards 3,992 ringgit, Reuters technical analyst Wang Tao said.
Source: Reuters (Reporting by Fransiska Nangoy and Bernadette Christina Munthe; Editing by William Mallard and Uttaresh.V)