SINGAPORE: Malaysian palm oil futures fell on Thursday as market participants awaited key official domestic supply and demand data due on Friday.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 11 ringgit, or 0.3%, to 3,757 ringgit ($802.43) a metric ton at the midday break.
“Palm prices will remain rangebound until the report by the MPOB (Malaysian Palm Oil Board) is released tomorrow,” said Lingam Supramaniam, director with vegetable oil brokerage Pelindung Bestari in Kuala Lumpur.
China’s consumer prices swung into decline and factory-gate deflation persisted in October as the world’s second-largest economy struggled to emerge from a post-pandemic slump.
Dalian’s most-active soyoil contract fell 0.1%, while its palm oil contract was down 0.7%.
“Robust demand in November, coupled with the seasonal decline in output until the first quarter of 2024, will support prices of palm oil,” Lingam added.
Chinese importers bought at least five more US soybean cargoes on Wednesday in a second day of active buying after booking their largest purchases in months a day earlier, two US exporters familiar with the deals said.
Chicago soybean futures hit 22-month lows in October on strong US harvest and weak demand. But futures are seeing signs of recovery as poor weather conditions in Brazil and strong demand underpinned the market.
Palm oil gains amid robust China imports, weak crude oil prices weigh
The price of soybeans impacts the cost of soyoil, which competes with palm oil for a share in the vegetable oil market.
Soyoil prices on the Chicago Board of Trade fell 0.2%.
The Malaysian ringgit, palm’s currency of trade, last traded flat against the dollar.
Stronger crude oil prices make palm oil a more attractive option for biodiesel feedstock.
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