Palm slips as investors lock in gains; set for 7% weekly jump

October 8, 2021: Malaysian palm oil futures eased on Friday after touching record highs recently, with the contract set to clock a 7% weekly rise.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slid 30 ringgit, or 0.62%, to 4,819 ringgit ($1,153.15) a tonne. For the week, it is set for a third straight weekly gain.

The contract rose to a fresh record high of 4,914 ringgit ($1,176.16) earlier in the day.

FUNDAMENTALS

* Dalian's most-active soyoil contract jumped 5.2%, while its palm oil contract surged 6.9% after a week-long holiday. Soyoil prices on the Chicago Board of Trade were up 0.11%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Oil prices rose, tracking towards a 4.2% gain for the week on signs some industries have begun switching fuel from high priced gas to oil and on doubts the U.S. government would release oil from its strategic reserves for now.

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

* Eyes are on Malaysian Palm Oil Board's supply and demand data due Monday. A Reuters poll pegged end-September stockpile to fall 0.36% from the previous month to 1.87 million tonnes amid lackluster output.

MARKET NEWS

* Asian shares rose as Chinese shares returned from a one-week holiday upbeat, tracking a global rally, while investors also eyed key U.S. jobs data for any fresh insight into the timing of Federal Reserve tapering.

Reuters