KUALA LUMPUR: Malaysian palm oil futures slipped on Friday on course for a weekly decline, weighed down by weaker crude and rival oil prices.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange slid 23 ringgit, or 0.47%, to 4,904 ringgit ($1,157.42) a tonne during early trade.
The contract is down 1.8% for the week, after posting two straight weekly jumps, also hurt by a forecast for stronger production of top vegetable oils next year.
Fundamentals
Exports of Malaysian palm oil products for Nov. 1-25 rose between 4.5% and 10.9% from the same period in October, according to cargo surveyors' data on Thursday.
The pace of shipments, however, have slowed down from a monthly rise of between 9% and 18% seen during Nov. 1-20.
Oil prices slid more than 1% on concerns that a global supply surplus could swell in the first quarter following a coordinated release of crude reserves among major consumers.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Dalian's most-active soyoil contract fell 0.2%, while its palm oil contract slipped 0.5%. The Chicago Board of Trade was closed for a public holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The ringgit, palm's currency of trade, fell 0.2% against the dollar, making the edible oil cheaper for holders of foreign currency.
- Palm oil may break a support at 4,902 ringgit per tonne, and fall to the next support at 4,827 ringgit, Reuters technical analyst Wang Tao said.
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