VEGOILS-Palm firms on Indonesian export curbs, dip in India imports caps gains
SINGAPORE, Nov 3 (Reuters) - Malaysian palm oil futures rose on Friday after top producer Indonesia confirmed the extension of export controls, though the plunge in edible imports to India limited gains.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 7 ringgit, or 0.2% to 3,789 ringgit ($798.52) a metric ton in the morning trade.
The benchmark contract has gained 0.3% so far in the week, and is headed for its fourth consecutive weekly rise.
FUNDAMENTALS
Indonesia will continue its domestic market obligation (DMO) for palm oil into 2024 to maintain the price stability of cooking oil, Trade Ministry official Isy Karim said on Thursday.
The policy was imposed last year to control soaring prices. Producers can export only once they have sold a portion domestically.
India's edible oil imports in October plunged to their lowest level in 16 months as higher stocks prompted refiners to curtail purchases of edible oils, six dealers told Reuters.
India is the top importer of vegetable oils, and lower purchases could push up palm oil stockpiles in other key producers.
China's services activity expanded at a slightly faster pace in October, a private-sector survey showed, with sales growing at the softest rate in 10 months.
Dalian's most-active soyoil contract DBYcv1 rose 1.6%, while its palm oil contract DCPcv1 was up 1.7%. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 0.5%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The Malaysian ringgit MYR=, palm's currency of trade, strengthened 0.2% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
MARKET NEWS
Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes.