The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange traded at $967.58 per tonne
Malaysian palm oil futures reversed earlier losses and advanced 1% on Friday as exports of the edible oil from top exporter Indonesia surged while stocks remained low.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange traded at 3,970 ringgit ($967.58) per tonne during early trade on Friday.
Benchmark palm oil prices gained on news Indonesia’s exports has surged in the first quarter of this year, while end stocks remained low. Indonesia palm oil association (GAPKI) said on Wednesday demand for palm oil rose due to uncertainty in planting and production of other oilseeds. Contract dropped more than 3% in the previous session on Wednesday when traders booked profits ahead of a public holiday and as rival oils weakened. The prices of rival soy oil on the Chicago Board of Trade (CBOT) contract BOcv1 shed 0.05%. The Dalian Commodity Exchange’s soyoil DBYcv1 and palm oil contracts DCPcv1 also lost 1.2% and 0.9%, respectively.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
U.S. corn futures edged up on Friday, as concerns about global supplies pushed prices towards their biggest monthly gain in more than two years.
Oil prices dropped on Friday, taking a breather after touching their highest in six weeks as economic recovery and bullish summer fuel demand outlook outweighed concerns of wider lockdowns in India and Brazil to curb COVID-19 pandemic.
World shares extended gains and Treasury yields gained on Thursday, after strong U.S. economic data and the Federal Reserve’s commitment to continue supporting the economy fuelled confidence in a recovery.