Mumbai, June 28 (Commodities Control): Malaysian palm oil futures closed the week with a modest gain of 0.4%, snapping a three-week decline.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange settled at 3,916 ringgit ($830.54) per metric ton on Friday, marking a 0.67% increase for the day.
The upward movement was driven by concerns over reduced production in Malaysia, the world's second-largest palm oil producer, and the strengthening of rival edible oils. Industry forecasts predict a decline in Malaysian palm oil production for June, contributing to the supply concerns.
Additionally, bullish energy prices and Indonesia's plans to implement its B40 palm oil biodiesel program by 2025 provided further support to the market.
India's progress with its annual monsoon season also contributed to the positive sentiment. Ample rainfall in India, the world's largest edible oil importer, is expected to boost domestic oilseed production and potentially reduce the country's reliance on palm oil imports in the coming year.
Rising crude oil prices also played a role, making palm oil a more attractive option for biodiesel feedstock.
Dalian's most-active soyoil contract rose 0.5, while its palm oil contract gained 0.7%. Soyoil prices on the Chicago Board of Trade were up 0.2%.
The recent recovery in palm oil prices signals a shift in market sentiment, driven by a combination of supply concerns, supportive government policies, favorable weather conditions, and positive price movements in related commodities. As the market continues to monitor these factors, it remains to be seen whether the upward trend will be sustained in the coming weeks.
Global Futures Palm oil and Soy Oil
(By Commoditiescontrol Bureau; +91-9820130172)
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