KUALA LUMPUR: Malaysian palm oil futures slipped on Thursday, erasing gains from the previous session as crude prices weakened, but upbeat outlooks on exports and output limited losses.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange slid 23 ringgit, or 0.47%, to 4,876 ringgit ($1,166.79) during early trade.
The contract had climbed 2.3% in the previous session.
Fundamentals
US oil was under pressure, adding to an overnight plunge on a Reuters report that the United States was asking major oil consumers like China and Japan to consider a coordinated release of oil reserves to lower prices.
Palm climbs 2% on weaker ringgit, slowing output
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Production in Malaysia is expected to slow down as the peak season ends and the moonsoon season brings in more rainfall.
Exports from the world's second largest producer during Nov. 1-15 jumped as much as 29% from the month before, cargo surveyors said this week.
Dalian's most-active soyoil contract gained 1.2%, while its palm oil contract rose 1.4%. Soyoil prices on the Chicago Board of Trade were up 0.2%.
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 4,962 ringgit per tonne, a break above which could lead to a gain to 5,048 ringgit, Reuters technical analyst Wang Tao said.
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