Mumbai, 26 January (Commoditiescontrol) Crude palm oil (CPO) futures rose on Friday for a third week at Malaysian exchange and hit their highest in four months, lifted by expectations of tighter output.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives (BMD) Exchange settled 27 ringgit or 0.68% higher at 4,021 ringgit ($851.01) a metric ton, its highest close since Sep. 1, 2023.
On weekly basis, palm oil prices gained 2.08% for a third week, as heavy rains in second-largest producer Malaysia fuelled expectations for January production to plunge.
"Due to the lower production season, palm oil is likely to stay at a tighter spread or even at a premium over competing soy oil and sun oil, at least till the end of Q1 2024," a research analyst said.
Exports from Malaysia during Jan. 1-25 rose 0.64% to 1,064,778 tons from 1,057,955 tons shipped during the previous month, cargo surveyor Intertek Testing Services said. Another cargo surveyor, AmSpec Agri Malaysia said exports during the same period fell 8.5%.
Vegetable oil demand from China, the world's second-largest palm oil importer, could pick up after the Spring Festival in February as its palm inventories have gone down, he added.
Dalian's most-active soyoil contract fell 0.91%, while its palm oil contract was up 0.19%. Soyoil prices on the Chicago Board of Trade were up 0.11%.
The Malaysian ringgit , palm's currency of trade, weakened 0.08% against the dollar.
Crude oil prices slipped after rising to their highest level since December in the previous session. However, they were set for their biggest weekly gain since October as positive U.S. economic growth and signs of Chinese stimulus boosted fuel demand sentiment. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
(By Commoditiescontrol Bureau: 09820130172)
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