Palm traded sideways amid weaker Dalian oils and stronger Chicago soyoil

Malaysian palm oil futures traded sideways on Monday as weakness in Dalian edible oils and crude oil prices countered strength in Chicago soyoil.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange slid RM7, or 0.17 per cent, to RM4,062 (US$981.63) a metric ton by 0242 GMT.

The contract traded between RM4,060 and RM4,097 in early trade after ending at RM4,069 on Friday, its lowest close since July 4.

Dalian’s most-active soyoil contract fell 0.17 per cent, while its palm oil contract shed 1.23 per cent. Soyoil prices on the Chicago Board of Trade were up 0.2 per cent.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices slipped, extending losses from last week, as Russia-Ukraine peace talks edged closer to a solution and the US dollar strengthened.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit, palm’s currency of trade, strengthened 0.19 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Global stocks began an event-filled week on the front foot, as investors took heart from growing expectations of a Federal Reserve rate cut in December even as policymakers remain divided over such a move.

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