Malaysian palm oil traded in a tight range on Thursday, and logged a weekly gain, as traders awaited Malaysian Palm Oil Board demand and supply data next week for further cues.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 7 ringgit, or 0.16%, to 4,449 ringgit ($1,058) a metric ton at close. The contract rose 1.42% this week.

The Malaysian bourse will be closed on Friday for a public holiday.

Traders are reducing positions ahead of the long weekend as the market anticipates Malaysian Palm Oil Board data and exports figures next week, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

“September export demand is expected to stay strong while production numbers will be the key determinant of the next market direction,” he said.

Malaysia’s palm oil inventories are forecast to rise for a sixth consecutive month in August, as production continues to outpace exports despite a recovery in demand, a Reuters survey showed.

Dalian’s most-active soyoil contract (DBYcv1) fell 0.14%, while its palm oil contract shed 0.21%. Soyoil prices on the Chicago Board of Trade were down 0.1%.

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

Oil prices dipped, extending the more than 2% decline of the previous session, as investors awaited a weekend meeting of OPEC+ where producers are expected to consider another increase in output targets.

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

Ringgit, palm’s currency of trade, remained unchanged against the U.S. dollar.
Source: Reuters