KUALA LUMPUR: Malaysian palm oil futures inched lower on Thursday, weighed down by weakness in overnight Chicago soyoil and crude prices, but stronger Dalian oils supported the market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 19 ringgit, or 0.44%, to 4,292 ringgit ($996.52) a metric ton at the midday break.
The market fell today as it was weighed down by weakness in overnight Chicago soyoil and crude prices, said a Kuala Lumpur-based trader.
“But, we see Dalian oils supporting the market,” the trader said. Dalian’s most-active soyoil contract climbed 0.17%, while its palm oil contract gained 0.32%. Soyoil prices on the Chicago Board of Trade were up 0.5%.
Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.
Oil prices rose in early Asian trade, paring sharp losses over the past two sessions, after industry data showed an unexpected drop in US crude stockpiles last week.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.4% against the US dollar, making the commodity cheaper for buyers holding foreign currencies.
Malaysian palm oil futures snaps two-day losing
European Union ambassadors agreed to delay the implementation of the landmark deforestation law by a year till the end of December 2025, they said in a statement.
Palm oil may fall to 4,206 ringgit per metric ton, following its failure to break resistance at 4,346 ringgit, Reuters technical analyst Wang Tao said.
Comments