JAKARTA: Malaysian palm oil futures gave up earlier gains to trade flat by midday on Tuesday, following an outlook of better vegetable oil production next year.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was unchanged at 4,959 ringgit ($1,183.25) by the midday break. It had risen as much as 1.33%.
"Selling activities came in as Thomas Mielke called for higher edible oil output in 2022," a Kuala Lumpur-based trader said.
Global production of the top four vegetable oils - palm, sunflower, soy and rapeseed oils - is likely to rise the highest in four years, head of Hamburg-based analyst firm Oil World Thomas Mielke said, up by 6.3 million to 6.8 tonnes in the 2021/2022 crop year altogether.
Meanwhile, prices of Dalian's most-active soyoil contract climbed 1.09% and its palm oil contract gained 0.98%. Soybean oil prices on the Chicago Board of Trade for January delivery erased its earlier gain to trade 0.05% lower.
Palm oil looks neutral in a range of 4,926 ringgit to 5,002 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
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