KUALA LUMPUR: Malaysian palm oil futures snapped a three-day rally on Thursday, tracking weakness in Dalian soyoil and lower crude prices.
Palm extends winning streak on output concerns
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange slid 34 ringgit, or 0.71%, to 4,764 ringgit ($1,072.97) a metric ton in early trade.
Fundamentals
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Dalian’s most-active soyoil contract fell 0.07%, while its palm oil contract added 0.76%. The Chicago Board of Trade was closed for Thanksgiving holiday.
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Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
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Oil prices edged lower in Asian trading, after a surprise jump in US gasoline stocks ahead of the nation’s Thanksgiving holiday sparked worry over demand in the top consumer of the motor fuel.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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The ringgit, palm’s currency of trade, remained unchanged against the dollar.
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Palm oil may retrace into a range of 4,679 ringgit to 4,731 ringgit per metric ton, as it faces resistance at 4,868 ringgit, Reuters technical analyst Wang Tao said.
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