Mumbai, 26 April (CommoditiesControl): Palm oil prices were firm at Malaysian exchange on Friday. BMD CPO futures rebounded after two-day fall amid declining yields and ample domestic demand, although sell-offs in Dalian rivals capped gains.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives (BMD) Exchange rose 17 ringgit, or 0.44% to 3,891 ringgit ($815.04) a metric ton by midday break.
The contract is down about 0.8% for the week.
Yields are still declining and May production numbers may not see a significant increase, while local demand, especially for biodiesel, remains largely intact, a market analyst said.
However, selling pressure regained momentum on Friday amid bearish undertones in the Dalian Commodity Exchange as traders continue to sell their positions in anticipation of further losses in the market, making it "difficult for palm to reverse this sell off, albeit the strong fundamentals", he added.
Dalian's most-active soyoil contract fell 0.13%, while its palm oil contract shed 0.24%. Soyoil prices on the Chicago Board of Trade rose 0.68%.
Soyoil rose as dry and hot weather throughout the season in northern Argentina may lead the Buenos Aires grains exchange to reduce its estimate for the country's 2023/24 soybean crop.
Palm oil normally takes directions from the price movements in related oils as they compete for a share in the global vegetable oils market.
Crude oil gained as players took stock of the U.S. Treasury secretary's comments that the country's economy is likely in a stronger position than indicated by weak first-quarter data, coupled with supply concerns as conflict continues in the Middle East. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
(By Commoditiescontrol Bureau; +91-9820130172)
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