Palm falls, tracking losses in Chicago soyoil and profit-taking

Malaysian palm oil futures fell on Thursday, as investors booked profits and a weakness in the Chicago soyoil contract added to the decline.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange fell 38 ringgit, or 0.91%, to 4,158 ringgit ($987.18) a metric ton at the midday break.

The contract shed 1.14% in overnight trade, after jumping more than 4% on Wednesday.

Malaysian palm oil futures declined today due to profit taking activities after the recent gains yesterday, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

“The decline is also influenced by the overnight weakness in the Chicago soyoil market.”

Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.14%. Dalian’s vegetable oil markets were closed for China’s Golden Week holiday.

Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.

Oil prices rose as chances of the widening Middle East conflict disrupting crude oil flows from the key exporting region overshadowed a stronger global supply outlook.

Brent crude futures LCOc1 for December were up 1.12% at $74.73 a barrel as of 0450 GMT. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit MYR=, palm’s currency of trade, weakened 1.06%against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.

The European Commission said it would propose delaying the implementation of a law banning the import of commodities linked to deforestation by a year, following calls from industries and governments around the world.

For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.

It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.

You are welcome to get a 7-day free demo access!!!

Tags: prices, Malaysia, palm oil, futures, benchmark contract, soyoil