VEGOILS-Palm oil edges up, concerns over higher inventories weigh

  • Reuters
  • Stock Market News
VEGOILS-Palm oil edges up, concerns over higher inventories weigh
Credit: © Reuters.

* Palm logs 0.1% weekly gain

* Ringgit declines against dollar

(Updates with closing prices, adds details)

By Mei Mei Chu

KUALA LUMPUR, March 5 (Reuters) - Malaysian palm oil futures ended higher on Friday but was unchanged for the week, underpinned by a weaker ringgit and gains in rival soyoil, but pressure from a forecast of higher February-end stockpiles capped the gains.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange closed 10 ringgit, or 0.27%, higher at 3,741 ringgit ($918.71) a tonne, after rising to an intraday high of 2%.

Palm logged its third straight session of gains.

Solid gains in Chicago Board of Trade soyoil on the back of a rise in crude oil spilled over to push palm futures higher this morning, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

"The rise was further supported by gains in bean oil on Dalian in Asia trading hours," he added.

The ringgit MYR= , palm's currency of trade, fell 0.4% against the dollar, making the edible oil cheaper for holders of foreign currencies.

Dalian's most-active soyoil contract DBYcv1 gained 0.9%, while its palm oil contract DCPcv1 rose 1.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.2%.

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

A Reuters survey on Thursday pegged Malaysia's end-February palm oil inventories 7% higher at 1.42 million tonnes as production picked up for the first time in five months. Bursa Malaysia Derivatives exchange plans to launch its revamped crude palm kernel oil futures on Monday, the bourse said. = 4.0720 ringgit)

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