KUALA LUMPUR: Malaysian palm oil futures traded sideways on Monday, as technical buying and a weaker ringgit limited its losses.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 6 ringgit, or 0.13%, to 4,530 ringgit ($1,039.47) a metric ton at the close.
The contract declined 1.59% over two consecutive sessions. The crude palm oil futures market recovered from early losses at midday due to technical buying and a weaker ringgit, a Kuala Lumpur-based trader said.
The ringgit, palm’s currency of trade, weakened 0.48% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Dalian’s most-active soyoil contract fell 1.52%, while its palm oil contract lost 1.13%. Soyoil prices on the Chicago Board of Trade were down 2.6%. Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
Oil prices tumbled by more than $4 a barrel after Israel’s retaliatory strike against Iran at the weekend bypassed oil and nuclear facilities and did not disrupt energy supplies.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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