SINGAPORE: Malaysian palm oil futures fell for a second straight session on Wednesday, ahead of a market holiday, on weaker rival edible and crude oil prices, although a weaker ringgit limited losses.
Malaysian palm oil falls on profit-taking
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 52 ringgit, or 1.23% to 4,184 ringgit ($884.94) a metric ton in morning trade, as of 0230 GMT. It fell 0.33% during overnight trade.
Fundamentals
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Dalian’s most-active soyoil contract fell 1.88%, while its palm oil contract lost 1.68%. Soyoil prices on the Chicago Board of Trade decreased 0.85%.
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Soybean and corn futures fell amid plentiful supply, with the markets looking ahead to data on US planting and grain stocks, due on Thursday, that could move prices.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Oil prices fell for a second day on Wednesday after a report that crude stockpiles in the US, the world’s biggest oil user, surged and on signs that major producers were unlikely to change their output policy at a technical meeting next week.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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The Malaysian ringgit, palm’s currency of trade, weakened 0.23% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
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