JAKARTA: Malaysian palm oil futures ended unchanged on Monday as gains stemming from supply concerns after Malaysia said it would impose fresh Covid-19 curbs offset losses from China traders unloading positions ahead of a week-long holiday.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange closed at 2,822 ringgit ($676.25) per tonne, unchanged from Friday's closing.
"Market is expected to consolidate ahead of Chinese holidays and MPOA Sep. 1-30 Malaysian palm oil production data," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.
China is heading for a week-long holiday from Oct. 1 and traders may unload their positions ahead of the holidays.
Palm fell as much as 2.6% in the afternoon session before swinging upward after Malaysia said it would impose strict movement restrictions in four districts in its largest palm oil-producing state Sabah, starting Tuesday. Sabah accounts for 25% of the crude palm oil produced in Malaysia, the world's second-largest exporter.
Elsewhere, Dalian's palm oil contract for January delivery was up 0.4%, while its soyoil contract rose 0.7%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may test a resistance at 2,860 ringgit per tonne, a break below could lead to a gain into the range of 2,883 to 2,905 ringgit, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.