JAKARTA: Malaysian palm oil futures closed lower on Thursday, tracking a decline in soyoil prices on the Chicago Board of Trade, while profit-taking also weighed.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 18 ringgit, or 0.45%, to 4,000 ringgit ($853.79) a metric ton on the closing.
“The futures seen trading sideways to lower on profit-taking after a bullish breakout early this week. The lack of follow-up buying from buyers, apart from India, is resulting in a cautious approach for palm oil buyers at the moment,” said Anilkumar Bagani, Research Head of Sunvin Group India.
Soyoil prices on the Chicago Board of Trade were down 0.45%. Dalian’s most active soyoil contract rose 0.17%, while its palm oil contract also increased 0.24%.
Soybean prices impact the cost of soyoil, which competes with palm oil for a share in the global vegetable oil market.
Palm oil futures closes 2.71% higher on soyoil strength
Indonesia plans to set its crude palm oil reference price at $750.54 per metric ton for Nov. 16-30, up from $748.93 a ton for the previous 15-day period.
Palm oil in the European vegetable oils market rose for the second day in a row on Wednesday, with futures up on stronger rival oils. Asking prices for palm oil were between $5 and $30 a ton.
According to independent inspection company AmSpec Agri, exports of Malaysian palm oil products between Nov. 1-15 rose 6.4% to 645,590 tons, from 606,980 tons shipped during Oct. 1-15.
Meanwhile, cargo surveyor Societe Generale de Surveillance estimated exports of Malaysian palm oil products for November 1-15 at 602,510 metric tons.
The Malaysian ringgit, palm’s currency of trade, pulled back 0.32% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Palm oil may test a resistance at 4,032 ringgit per metric ton, a break above which could open the way towards the 4,067-4,103 ringgit range, according to Reuters technical analyst Wang Tao.
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