Palm trades sideways ahead of export data, set for best week since June 2023

KUALA LUMPUR, Oct 25 (Reuters): Malaysian palm oil futures were on track for their best week in more than 16 months, even as the market traded sideways ahead of export data from cargo surveyors on Friday.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange slid 6 ringgit, or 0.13 per cent, to 4,597 ringgit a metric ton in early trade.

The contract has gained 7.92 per cent so far this week, heading for its biggest weekly gain since mid-June 2023 amid expectations of lower production and stockpiles.

Cargo surveyors are expected to release later in the day their estimates for Malaysian palm oil exports during the Oct. 1-25 period.

Dalian's most-active soyoil contract rose 1.66 per cent, while its palm oil contract climbed 1.48 per cent. Soyoil prices on the Chicago Board of Trade were up 0.05 per cent.

Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.

Oil prices rose and were on track for a weekly gain of more than 1 per cent, as tensions in the world's top oil-producing region, the Middle East, and a restart in Gaza ceasefire talks in the coming days kept traders on edge.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit MYR=, palm's currency of trade, weakened 0.07 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.