SINGAPORE: Malaysian palm oil futures tracked Chicago soyoil and crude oil lower on Monday, although a weaker ringgit limited the losses.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell 45 ringgit, or 1.13%, to 3,930 ringgit ($833.86) a metric ton by 0230 GMT.
Malaysian palm oil higher on firm crude
It declined 2.48% last week.
Fundamentals
-
Soyoil prices on the Chicago Board of Trade slid 0.37%, weighed down by favourable crop conditions in the United States, where farmers have made steady progress in planting corn and soybeans while starting winter wheat harvesting.
-
China’s Dalian Commodity Exchange was closed on Monday for a public holiday, and will re-open on Tuesday.
-
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
-
Oil prices nudged lower for a second straight session, weighed down by a firmer dollar as expectations of interest rate cuts were pushed out further following strong US jobs data on Friday.
-
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
-
Dry weather “will persist across the palm oil belts of Sumatra and West Malaysia”, while wet spells “may support palm growth across Kalimantan and Sabah palm oil belts”, according to LSEG forecast on Friday.
-
The Malaysian ringgit, palm’s currency of trade, weakened 0.53% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Comments