Palm firms on strong Dalian oils, crude oil; set to snap two-week decline

Malaysian palm oil futures edged higher on Friday, driven by stronger rival Dalian oils and crude oil prices, but weaker Chicago soyoil capped the gains.

The benchmark palm oil contract FCPO1! for December delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.23%, to 4,449 ringgit ($1,054.52) a metric ton in early trade. The contract rose 0.63% so far this week after two straight weekly declines.

FUNDAMENTALS

* Dalian's most-active soyoil contract (DBYcv1) rose 0.27%, while its palm oil contract CPO1! added 0.67%. Soyoil prices on the Chicago Board of Trade ZL1! were down 0.4%.

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

* Crude oil prices edged up, on track to rise at their steepest rate since early June as Ukraine's attacks on Russia's energy infrastructure push Moscow to restrict fuel exports and close to cutting crude output. O/R

* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

* The ringgit USDMYR, palm's currency of trade, weakened 0.14% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

* India purchased 300,000 metric tons of soyoil from Argentina on Tuesday and Wednesday, the largest ever purchase in a two-day period, dealers said, taking advantage of Buenos Aires' move to scrap export taxes on soybeans and other food products.

* Indonesia's Supreme Court has overturned the acquittals of Wilmar Group and two other palm oil firms over allegations of misconduct in securing palm oil export permits in 2022.

* Malaysian Palm Oil Council welcomed the European Union's proposal to delay the launch of its anti-deforestation law for a second time as the decision will allow time for the EU to address concerns about the implementation of the regulation.

* Palm oil may extend gains into a range of 4,479-4,492 ringgit per metric ton, as suggested by its wave pattern and a projection analysis, Reuters technical analyst Wang Tao said. TECH/C