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Malaysian palm oil futures pared early losses but still closed out the week with a second consecutive weekly decline on Friday, as the market sought fresh direction following the release of monthly export data.
The benchmark June palm oil contract (FCPO1!) on Bursa Malaysia Derivatives rose 14 ringgit, or 0.33%, to close at 4,214 ringgit ($953.39) a tonne.
Even so, the contract posted a weekly loss of 2.63%.
A trader based in Kuala Lumpur said:
"The market is in a consolidation phase after the recent declines, and is waiting to determine its next direction based on this month's export and production data."
Data released by the industry regulator on Thursday showed that Malaysia's palm oil stocks recorded their first increase in six months in March, as a recovery in production and a sharp rise in imports offset strong festive-related demand.
Stocks at the end of March rose 3.52% from the previous month to 1.56 million tonnes.
Independent inspection company AmSpec Agri Malaysia said Malaysian palm oil product exports for 1-10 April rose 52.8% to 301,113 tonnes.
Cargo surveyor Intertek Testing Services reported that exports rose 29.3% to 323,160 tonnes.
A trade body also said on Friday that India's palm oil imports in March rose about 14% from the previous month to 424,599 tonnes.
In global markets, the most-active soybean oil contract on China's Dalian Commodity Exchange (DBYcv1) rose 0.84%, while its palm oil contract (CPO1!) gained 0.69%. Soybean oil prices on the Chicago Mercantile Exchange (CBOT) (ZL1!) rose 1.4%.
Palm oil prices are influenced by movements in competing vegetable oils, as they compete for a share of the global vegetable oil market.
The ringgit, palm oil's main trading currency, also strengthened 1.03% against the US dollar, making the commodity more expensive for buyers holding foreign currencies.
Source: Reuters