JAKARTA: Malaysian palm oil futures ended the afternoon session lower on Wednesday as a rally in rival oils eased, while concern of sluggish exports remain amid high stock.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 0.48% to 4,107 ringgit ($871.60) per tonne by the end of the afternoon trade.
The contract climbed as much as 2.57% in the morning session.
“We’re following external markets rather closely at the moment, so when Dalian, CBOT and crude oil take a breather, we’ll follow to take profits,” a trader in Kuala Lumpur said.
Dalian’s most active soyoil contract posted a 0.19% gain, while its palm oil contract edged 0.02% lower. Earlier in the day, the contracts rose by as much as 1.05% and 2.07%, respectively.
Soyoil prices on the Chicago Board of Trade were up 0.68%.
Oil prices were broadly stable on Wednesday, moving in and out of negative territory after industry data showed US crude stockpiles rose more than expected, though supply concerns and a weaker dollar gave support.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
“Fundamentally we’re looking at high stock level, better production and moderate exports,” the trader added.
Exports of Malaysian palm oil products for Oct. 1-25 fell 3.5%, compared with shipments on Sept. 1-25, cargo surveyor Intertek Testing Services said on Tuesday, while Societe Generale de Surveillance reported on Wednesday exports eased 0.6%.
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