Palm tracks rival Chicago soyoil and Dalian’s olein lower

JAKARTA: Malaysian palm oil futures inched lower on Wednesday, marking four straight sessions of falls, tracking weaknesses in Chicago soyoil and Dalian’s palm olein.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 1 ringgit, or 0.02%, to 4,052 ringgit ($1,042.45) a metric ton at the close.

“Palm is following mostly firmer external markets and some bargain-buying given recent losses,” said a Kuala Lumpur-based trader.

Dalian’s most-active soyoil contract rose 0.96%, while its palm oil contract lost 0.16%. Soyoil prices on the Chicago Board of Trade fell 0.46%.

Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.

READ MORE: Palm oil falls for third session on weak export demand, strong ringgit

According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for February 1 - 25 fell 16.1% compared to January 1 - 25, while according to Intertek Testing Services, it fell 12.1%.

The ringgit, palm’s currency of trade slightly strengthened 0.08%, making the commodity more expensive for buyers holding foreign currencies.

Chicago soybeans rose to a new three-month high on Wednesday, buoyed by optimism over Chinese demand as comments from Beijing eased some concerns over U.S. tariff policy.

Oil prices edged higher on Wednesday, as investors weighed the threat of military conflict between the U.S. and Iran that could disrupt supply and a big build in U.S. crude inventories.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.