Palm flat after four-day slide as firmer Dalian oils offset weaker crude
KUALA LUMPUR: Malaysian palm oil futures ended flat on Thursday, as stronger rival Dalian oils countered pressure from softer crude oil prices and weaker Chicago soyoil. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 3 ringgit, or 0.06%, to 4,771 ringgit ($1,168.22) a metric ton at the close. The contract fell 3.4% in the last four…
Malaysian palm oil futures closed flat on Thursday, as bolstering Dalian oils offset the impact of declining crude oil prices and weaker Chicago soyoil. The December palm oil contract on Bursa Malaysia Derivatives Exchange rose 3 ringgit, or 0.06%, to 4,771 ringgit ($1,168.22) per metric ton at the close, after slipping 3.4% over the previous four sessions.
Soyoil prices on the Chicago Board of Trade declined 0.03%, while Dalian's most-traded soyoil contract increased 0.39% and its palm oil contract gained 0.68%. Palm oil follows the price movements of competing edible oils, vying for a larger share of the global vegetable oils market. Oil prices climbed more than 2% amid little progress in US-Iranian diplomatic talks and investor concerns over a potential US ban on diesel exports.
A stronger crude oil price makes palm a more appealing choice for biodiesel feedstock. The Malaysian ringgit, traded as palm oil's currency, weakened 0.17% against the dollar, making the commodity slightly more affordable for foreign buyers. Palm oil prices are likely to stay under pressure due to rising inventories in Malaysia, sluggish buying by India, the world's largest importer, and the upcoming effects of El Niño.
The Indian government recently reduced the basic import duty on crude and refined edible oils, including palm oil, soyoil, and sunflower oil, aiming to lower prices during the peak festive season.
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