Palm climbs over 1pct on stronger rival oils; set to snap two-week decline

KUALA LUMPUR: Malaysian palm oil futures rose more than one per cent on Friday and were poised for their first weekly gain in three weeks, as strength in rival edible oils outweighed pressure from weaker crude oil.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange climbed RM57, or 1.22 per cent, to RM4,718 (US$1,154.67) a metric ton in early trade. The contract has gained 3.55 per cent so far this week.

Dalian's most-active soyoil contract rose 1.22 per cent, while its palm oil contract added 1.56 per cent. Soyoil prices on the Chicago Board of Trade were up 0.53 per cent.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices fell as Middle East supply concerns eased somewhat after US President Donald Trump said the country will not attack Iran before US elections next month amid productive talks to end their war that has disrupted the market.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit, palm's currency of trade, strengthened 0.05 per cent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.

Asian stocks slipped on Friday and were poised for a second straight weekly drop as investors fretted about elevated energy prices, bond market ructions and the huge sums needed to fund AI investment.