April,07(Agencies)—— Malaysian palm oil futures inched down on Friday to a one-week closing low, weighed by weakness in Dalian rival oils, although the contract clocked a weekly rise on expectation of tightening supply.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed down 23 ringgit, or 0.6%, to 3,800 ringgit ($863.44) a tonne.
For the week, palm has risen 1.04%, advancing for a second consecutive week.
Spot month was holding firm reflecting support on physical side, but far months were showing weakness because market sentiment is weak, a Kuala Lumpur-based trader said.
Investors are awaiting Malaysian Palm Oil Board (MPOB) data due on Monday to determine further price direction.
A Reuters’ survey ahead of MPOB data forecast Malaysia’s palm oil inventories tumbling to an eight-month low of 1.77 million tonnes at end-March, as exports soared ahead of the month of Ramadan.
Dalian’s most-active soyoil contract eased 1%, while its palm oil contract fell 1.3%. The Chicago Board of Trade was closed for a public holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices were little changed on Thursday but posted a third weekly gain as markets weighed further production cuts targeted by OPEC+ and falling U.S. oil inventories against fears about the global economic outlook.
Stronger crude futures make palm a more attractive option for biodiesel feedstock.
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