(Updates with closing prices)
By Mei Mei Chu
KUALA LUMPUR, April 2 (Reuters) – Malaysian palm oil futures edged lower on Friday but logged their first weekly rise in three as improving demand added to expectations of sustained tight supply.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange slipped by 2 ringgit, or 0.05%, to 3,739 ringgit ($903.58) a tonne after rising as much as 1% earlier in the day. For the week, it was up 1.3%.
Better March exports and positive sentiment from the U.S. planting intentions report are supporting prices, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Palm oil exports from Malaysia, the world’s second-largest exporter, rose about 27% in March from the previous month, cargo surveyors said on Wednesday. the market is anticipating April exports to be a tad better versus March. With tight end-stocks and better than expected exports, prices are expected to remain firmer,” he added.
Prices of rival soybeans rose to their highest in nearly a month on Thursday after the U.S. Department of Agriculture’s planting intentions report pegged soybean acreage well below expectations. Dalian’s most active soyoil contract DBYcv1 gained 2.5% while its palm oil contract DCPcv1 rose 2%. U.S. markets were closed for a public holiday.
Palm oil is affected by price movements in related oils that compete for a share in the global vegetable oils market. ($1 = 4.1380 ringgit)
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