NEW DELHI: Malaysian palm oil futures opened lower on Tuesday, despite higher soyoil prices on the Chicago Board of Trade, as the market awaits industry data for January inventory levels of the tropical oil.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange lost 16 ringgit, or 0.41%, to 3,868 ringgit ($811.92) in the early session.
Fundamentals
Soyoil prices on the Chicago Board of Trade were up 0.32%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm posts weekly gain on lower production estimates
Oil prices were little changed on Tuesday for a second straight day as uncertainty about the pace of potential U.S. interest rate cuts and the impact on fuel demand offset worries about Middle East tensions that could disrupt supply.
Stronger crude oil futures typically make palm a more attractive option for biodiesel feedstock.
The rebound in palm oil prices is likely to be capped by abundant supplies of rival soyoil and sunflower oil, which are “soft” oils available at discounts to tropical palm oil for the first time in more than a year.
Palm oil may fall into a range of 3,845-3,856 ringgit per metric ton, as it failed to break resistance at 3,925 ringgit.
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