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Malaysian palm oil futures rose on Friday, ending a two-week losing streak, supported by expectations of stronger demand from key markets in August.
The benchmark palm oil contract for October delivery on Bursa Malaysia Derivatives closed up 14 ringgit, or 0.33%, at 4,254 ringgit ($1,004.49) a tonne. Over the week, the contract gained 0.21%.
Paramalingam Supramaniam, director at brokerage Pelindung Bestari, said there were signs of a demand recovery in August for both crude palm oil and refined products, adding: "Overall, I think demand in August will be a bit higher than in July."
Cargo surveyors are expected to release their export estimates for the 1-10 August period on Monday.
The most active soybean oil contract on the Dalian exchange fell 0.31%, while its palm oil contract slipped 0.09%. Soybean oil prices on the Chicago Board of Trade were down 0.45%.
Palm oil prices tend to track movements in competing vegetable oils, as they compete for a share of the global vegetable oils market.
Palm Oil Slips On Weak Demand
Oil prices were steady but were on track for their biggest weekly loss since late June, amid negative economic expectations stemming from tariffs and the possibility of a meeting between US President Donald Trump and his Russian counterpart, Vladimir Putin.
Stronger crude oil futures make palm oil a more attractive option as a feedstock for biodiesel production.
The ringgit, in which palm oil is traded, weakened 0.12% against the dollar, making the commodity relatively cheaper for buyers holding foreign currencies.
Source: Reuters