JAKARTA: Malaysian palm oil futures traded lower on Monday, mirroring the drop in rival soyoils on the Dalian market, while the market awaited further triggers amid the holiday season.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange lost 4 ringgit, or 0.09%, to 4,620 ringgit ($1,034.25) a metric ton by the midday break.
“Today’s futures will be lacklustre, tracking Dalian while waiting for the holiday season to be over for further leads,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract dropped 0.31% while its palm oil contract added 0.11%. Soyoil prices on the Chicago Board of Trade rose 0.28%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices edged up on Monday in thin holiday trade ahead of the year-end as traders awaited more Chinese and US economic data later this week to assess growth in the world’s two largest oil consumers.
Palm rises on bargain buying, stronger rival edible oils
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, rose a slight 0.02% against the US dollar, making the commodity a tad more expensive for buyers holding foreign currencies.
Cargo surveyors estimated Malaysian palm oil dropped 1.1%-4% between Dec. 1-25 and Nov. 1-25.
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