Palm oil reverses losses to close higher

JAKARTA: Malaysian palm oil futures reversed losses to close higher on Thursday after heavy morning profit-taking activities weighed down the market.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 64 ringgit, or 1.32%, to 4,920 ringgit ($1,109.36) a metric ton at the closing.

“Futures prices fall with heavy morning selling activities. Overnight weakness in soyoil at the Chicago exchange also dragged the futures lower,” said a Kuala Lumpur-based trader.

India’s palm oil imports in November fell 0.4% from October to 841,993 metric tons, the Solvent Extractors’ Association of India said on Thursday.

Cargo surveyor Intertek Testing Services said on Tuesday that exports of Malaysian palm oil products for Dec. 1-10 rose 3.9%, while according to independent inspection company AmSpec Agri Malaysia it rose 1.1% Soyoil lost 0.33% at the Chicago Board of Trade.

Dalian’s most-active soyoil contract fell 0.1%, while its palm oil contract declined 0.62%.

Oil prices were little changed on Thursday as forecasts of weak demand and a higher-than-expected rise in US gasoline and distillate inventories placed a lid on gains from an additional round of EU sanctions threatening Russian oil flows.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. Palm oil is expected to bounce to 4,961 ringgit per metric ton as it stabilized around support at 4,825 ringgit, Reuters technical analyst Wang Tao said.