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Palm surges more than 2%, logs weekly gain

Published Jan 11, 2025

Tridge summary

Malaysian palm oil futures rose over 2% on Friday, resulting in a weekly increase, largely due to the rise in Chicago soyoil prices. The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed at 4,393 ringgit ($977.74) a metric ton, with expectations of increased production and exports contributing to the gains despite concerns over Indonesian palm oil reference price, B40 biodiesel mandate success, and Dalian palm olein futures. Meanwhile, a decrease in Malaysia's palm oil stocks and production, coupled with potential supply disruptions from sanctions and weather conditions, have led to an uptick in crude oil futures, making palm oil a more appealing biodiesel feedstock.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Malaysian palm oil futures ended more than 2% higher on Friday, bouncing back to log a weekly gain, tracking stronger Chicago soyoil prices. The benchmark palm oil contract FCPO1! for March delivery on the Bursa Malaysia Derivatives Exchange rose 97 ringgit, or 2.26%, to 4,393 ringgit ($977.74) a metric ton at the close. The contract gained 0.57% this week. “Crude palm oil futures were seen trading higher on the back of a strong recovery in overnight Chicago soyoil and during Asian hours today,” said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group. Bagani, however, said the expectations of a drop in Indonesian palm oil reference price for February, uncertainty over the success of Indonesia’s B40 biodiesel mandate and lacklusture Dalian palm olein futures capped the gains. Dalian’s most-active soyoil contract (DBYcv1) rose 0.88%, while its palm oil contract CPO1! gained 0.21%. Soyoil prices on the Chicago Board of Trade ZL1! were up 3.23%. Palm ...
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