JAKARTA, Nov 19 (Reuters) – Malaysian palm oil futures edged lower on Friday as traders locked in profits after a recent strong performance, though the benchmark was poised for a modest weekly gain.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 0.20% to 4,988 ringgit ($1,193.02) during early trade on Friday.
FUNDAMENTALS
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* Malaysia’s palm oil production is expected to slow down as the peak season ends while the moonsoons bring in more rainfall.
* Exports from the world’s second-largest producer during Nov. 1-15 jumped as much as 29% from the previous month, cargo surveyors earlier this week.
* Dalian’s most-active soyoil contract gained 0.79%, while its palm oil contract rose 1.65%. Soyoil prices on the Chicago Board of Trade were up 0.39%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may rise into a range of 5,048 ringgit to 5,101 ringgit per tonne, driven by a wave c, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Oil prices steadied on Friday as investors paused for breath following a day of wild swings prompted by the prospect of coordinated action by the world’s major economies to release official crude reserves from stocks.
* Asian shares fell on Friday as disappointing earnings from Chinese e-commerce giant Alibaba heightened worries about Beijing’s broad regulatory crackdown and slowing growth in the world’s second-biggest economy.
DATA/EVENTS
0700 UK Retail Sales MM, YY Oct
0700 UK Retail Sales Ex-Fuel MM Oct
($1 = 4.1810 ringgit)
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Reporting by Fransiska Nangoy
Our Standards: The Thomson Reuters Trust Principles.
