JAKARTA: Malaysian palm oil futures closed down on Friday, snapping a four-session rally, dragged by weakness in Dalian’s soyaoil and lower crude oil prices.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 68 ringgit or 1.70%, to 3,930 ringgit ($840.10) a metric ton on its closing. The futures gained 3.37% compared to last week.
“Profit taking is happening after this week’s rally backed by Dalian and CBOT soyaoil even though the fundamentals maintain, including better export and slower production. Point to note is the continued weakness on crude oil,” a Kuala Lumpur-based trader told Reuters.
Soyaoil prices on the Chicago Board of Trade (CBOT) were up 0.72%. Dalian’s most active soyaoil contract fell 1.89%, while its palm oil contract declined 1.60%.
Soyabean prices impact the cost of soyaoil, which competes with palm oil for a share of the global vegetable oil market.
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