Malaysian palm oil price rebounds from one-week low on stronger crude prices

KUALA LUMPUR: Malaysian palm oil futures rebounded from a one-week low on Friday, tracking rises in crude oil prices.

The market earlier fell on concerns of oversupply and overnight soyoil weakness on the Chicago Board of Trade (CBOT).

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was up 0.4 percent to 2,171 ringgit ($530.29) a tonne at the close of trade.

It earlier fell to 2,146 ringgit, its lowest since Jan. 4, but traded flat for the week.

“Palm prices rose on crude oil’s gains,” said a Kuala Lumpur based trader.

Oil prices rose 1 percent on Friday, on track for solid weekly gains after financial markets strengthened due to hopes the United States and China may soon resolve their trade dispute.

Tightened supply following OPEC-led cuts in crude output also aided gains, but fears of an economic slowdown have kept markets in check.

Palm oil prices are impacted by movements in crude oil, as it is used as feedstock to make biodiesel.

The Chicago March soybean oil contract fell 1.4 percent on Thursday, but was last up 0.5 percent on Friday.

In other related oils, the March soybean oil contract on the Dalian Commodity Exchange fell 0.5 percent, and the Dalian January palm oil contract rose 0.4 percent. – Reuters

Source: TheStar