Mumbai, 19 April (Commoditiescontrol) : BMD CPO futures stayed steady on Friday before mid-day break after erasing early gains. Malaysian palm oil futures rebounded during early trade after a five-day losing streak amid a jump in oil prices, even as the contract is set for a second consecutive weekly decline.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was unchanged at 3,984 ringgit ($840.26) a metric ton before mid day break. The contract is poised to register weekly fall today. Malaysian ringgit was also trading flat against the US dollar.
As per the market analysts, demand for Malaysian palm oil is likely to remain low in the coming days as the festivities wrap up, and amid more attractive pricing against rival vegetable oils.
During early trade prices of palm oil rose taking firm cues from Dalian and CBOT veg oil futrues as palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The Malaysian ringgit , palm's currency of trade, weakened 0.17% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders. Crude oil prices were trading nearly $2 per barrel higher during Asian hours compared to last session. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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