Palm oil ends flat; plans of fresh Malaysia curbs help prices

JAKARTA: Malaysian palm oil futures ended unchanged on Monday as gains stemming from supply concerns after Malaysia said it would impose fresh COVID-19 curbs offset losses from China traders unloading positions ahead of a week-long holiday.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange closed at 2,822 ringgit ($676.25) per tonne, unchanged from Friday's closing.

"Market is expected to consolidate ahead of Chinese holidays and MPOA Sep. 1-30 Malaysian palm oil production data," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.

China is heading for a week-long holiday from Oct. 1 and traders may unload their positions ahead of the holidays.

Palm fell as much as 2.6pc in the afternoon session before swinging upward after Malaysia said it would impose strict movement restrictions in four districts in its largest palm oil-producing state Sabah, starting Tuesday.

Sabah accounts for 25pc of the crude palm oil produced in Malaysia, the world's second-largest exporter.

Elsewhere, Dalian's palm oil contract for January delivery was up 0.4pc, while its soyoil contract rose 0.7pc.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may test a resistance at 2,860 ringgit per tonne, a break below could lead to a gain into the range of 2,883 to 2,905 ringgit, Reuters technical analyst Wang Tao said.