Palm weighed down by overnight weakness in Chicago soyoil and crude prices

Malaysian palm oil futures inched lower on Thursday, weighed down by weakness in overnight Chicago soyoil and crude prices, but stronger Dalian oils supported the market.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 19 ringgit, or 0.44%,to 4,292 ringgit ($996.52) a metric ton at the midday break.

The market fell today as it was weighed down by weakness in overnight Chicago soyoil and crude prices, said a Kuala Lumpur-based trader.

“But, we see Dalian oils supporting the market,” the trader said.

Dalian’s most-active soyoil contract DBYcv1 climbed 0.17%,while its palm oil contract DCPcv1 gained 0.32%.Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.5%.

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

Oil prices rose in early Asian trade, paring sharp losses over the past two sessions, after industry data showed an unexpected drop in U.S. crude stockpiles last week.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit MYR=, palm’s currency of trade, weakened 0.4% against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.

European Union ambassadors agreed to delay the implementation of the landmark deforestation law by a year till the end of December 2025, they said in a statement.

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