JAKARTA: Malaysian palm oil futures closed down on Thursday, weighed down by profit taking, weakness in export performance and absence of fresh buying support.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 23 ringgit, or 0.60%, to 3,840 ringgit ($804.53) a metric ton on its closing.
“Palm oil closed lower on profit taking, sighting the weakness in export performance and absence of fresh buying support as the prices are at premium over soft oils,” said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
Soyoil contract at the Dalian Commodity Exchange was up 0.25%, while its palm oil contract was down 0.24%. Meanwhile, soyoil prices on the Chicago Board of Trade were up 0.04%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Feb. 1-20 were seen falling by 3.4% to 18.3% from the previous month, cargo surveyors data showed.
Palm oil tracks rival oils higher, reverses previous session’s losses
The ringgit was down 0.4% against the dollar, making the edible oil more attractive for holders of foreign currency.
Oil prices rose slightly, holding to gains from the previous session that came amid signs of tighter supply.
Palm oil remains neutral in a range of 3,815 ringgit to 3,891 ringgit per metric ton, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
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