Palm extends losses for second session as profit-taking weighs

Malaysia's palm oil futures experienced a second consecutive day of declines on Wednesday, driven by profit-taking despite some relief from concerns over El Niño's impact on production. The benchmark palm oil contract for November delivery on Bursa Malaysia Derivatives Exchange fell 15 ringgit, or 0.3%, to 4,961 ringgit ($1,220.12) per metric ton by midday.

Analyst Paramalingam Supramaniam, from brokerage Pelindung Bestari, stated that the market is experiencing intermittent profit-taking but remains generally bullish, influenced by El Niño factors and the anticipated lack of rainfall. He also noted that the market is awaiting Malaysian Palm Oil Board (MPOB) data, which is expected to be released on Thursday.

Palm oil prices rose for the fourth straight session, climbing more than $1 in early trade on Wednesday due to heightened concerns over supply disruptions from renewed attacks in the Middle East. Soyoil prices in Dalian fell 1.39%, while Chicago Board of Trade soyoil contracts decreased 1.15%. Palm oil prices are affected by those of other edible oils, as it competes for a share in the global vegetable oils market.

The Malaysian ringgit, used for trading palm oil, weakened by 0.22% against the dollar, making the commodity slightly more affordable for foreign buyers. Indonesia utilized 10.7 million kilolitres of palm oil-based biodiesel from January to early September, as announced in an Energy Ministry presentation during a parliament hearing.