By Fransiska Nangoy
JAKARTA, Nov 19 (Reuters) – Malaysian palm oil futures posted a slim rise on Friday and was poised for a second straight weekly gain as concerns over a slowdown in production and strong exports supported prices.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange gained 0.18% to 5,007 ringgit ($1,197.56) by midday break.
It fell as much as 0.54% earlier in the session due to some profit taking, before regaining some ground. Palm extended a 4.39% over the previous two sessions and was heading for a second weekly gain.
“Palm dropped in the morning most likely due to profit taking since palm rallied yesterday, but there’s underlying strength due to good exports and lower production,” a Kuala Lumpur based palm trader said.
Traders were also anticipating good exports data for Nov. 1-20 period which would be released soon, he added.
Exports from the world’s second-largest producer during Nov. 1-15 jumped as much as 29% from the previous month, cargo surveyors earlier this week.
Meanwhile, Malaysia’s palm oil production is expected to slow down as the peak season ends while the monsoons bring in more rainfall.
In related oils, Dalian’s most-active soyoil contract DBYcv1 gained 1.06%, while its palm oil contract DCPcv1 rose 1.92%. Soyoil prices on the Chicago Board of Trade BOcv1 were 0.17% higher.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may rise into a range of 5,048 ringgit to 5,101 ringgit per tonne, driven by a wave c, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.1810 ringgit)
cpohttps://tmsnrt.rs/3nwge61
(Additional reporting by Bernadette Christina Munthe; editing by Uttaresh.V)
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