Palm ends flat as traders await MPOB demand and supply data

Malaysian palm oil futures closed at a standstill on Tuesday, as traders remained cautious about weather risks to production and watched for fresh demand and supply data from the industry regulator. The November palm oil contract on Bursa Malaysia Derivatives Exchange decreased by 1 ringgit, or 0.02%, to 4,977 ringgit ($1,226.77) per metric ton.

Despite the flat trading, the market experienced upward momentum due to ongoing concerns about El Nino weather patterns and a rise in soybean oil prices, according to David Ng, a trading specialist at Kuala Lumpur-based firm Iceberg X Sdn Bhd. The Malaysian Palm Oil Board (MPOB) is scheduled to release its August demand and supply figures on Thursday.

In contrast, Dalian's most-traded soyoil contract increased by 0.51%, and its palm oil contract rose by 1.37%. Soybean oil prices on the Chicago Board of Trade climbed by 0.82%. Palm oil prices mirror those of other edible oils as they vie for a larger portion of the global vegetable oil market. Oil prices reached multi-week peaks following Iran-backed Houthi attacks on Saudi energy infrastructure and Iran's warning of "economic warfare" against the United States.

The weakening of the ringgit, palm oil's currency of trade, made the commodity slightly less expensive for buyers holding foreign currencies. Meanwhile, India's increased demand for vegetable oils has caused congestion at major ports, causing vessel unloading delays of up to 10 days as shore tanks fill and refiners struggle to unload incoming cargo, according to industry officials.