Palm oil muted but poised for sixth weekly gain

KUALA LUMPUR: Malaysian palm oil futures were muted on Friday as traders awaited cargo surveyors' export estimates, but the contract was still set for a sixth consecutive weekly gain as stronger rival edible oils supported the market.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained RM7, or 0.17 per cent, to RM4,111 (US$967.52) a metric tonne in early trade.
The contract has gained 5.50 per cent so far this week.
Dalian's most-active soyoil contract rose 0.62 per cent, while its palm oil contract added 0.28 per cent. Soyoil prices on the Chicago Board of Trade were up 0.09 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Cargo surveyors are expected to release Malaysian palm oil export estimates for June 1–20 later in the day.
Oil prices were on track to rise for the third straight week despite slipping on Friday, with investors on edge as the week-old war between Israel and Iran showed no signs of either side backing down.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.21 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Palm oil may test the resistance zone of RM4,157 to RM4,185 per metric tonne, a break above which could lead to a gain to RM4,229, Reuters technical analyst Wang Tao said.

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