JAKARTA: Malaysian palm oil futures gave up early gains to trade lower on Thursday, weighed down by losses in rival Dalian oils, although a weaker ringgit provided some support to the market.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 0.33% to 3,956 ringgit ($898.89) per tonne by the midday break.
Earlier in the day, it rose as much as 2.19%. Palm was dragged down by a “very weak” Dalian market, a trader in Kuala Lumpur said.
Dalian’s palm oil contract fell 2.20%, while the most active soyoil contract dropped 0.22%, reversing an earlier gain of 0.75%.
Soyoil prices on the Chicago Board of Trade climbed 0.61%. Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Palm oil may revisit Nov. 21 low of 3,787 ringgit
Meanwhile, the ringgit softened against the US dollar for a third day after hitting its strongest level since early May earlier this week.
A weaker ringgit makes palm oil more attractive to holders of foreign currencies.
Palm oil may rise into a range of 4,132-4,196 ringgit a tonne, as it managed to hover above a rising trendline, Reuters technical analyst Wang Tao said.
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