KUALA LUMPUR: Malaysian palm oil futures eased on Thursday to adjust spread against rival vegetable oil, after hitting its highest closing price in more than seven months in the previous session.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was down 0.59% at 3,941 ringgit 4,057 ringgit ($860.81) per metric ton at 0241 GMT.
The contract rose 2.38% a day before, its biggest daily gain in nearly four months, fuelled by tight supply and optimism over palm demand, while higher rival oil prices also supported.
Palm oil rises to more than seven-month high on supply tightness, demand optimism
Fundamentals
The soyoil contract on the Dalian Commodity Exchange was up 0.29%, while its palm oil contract were up 1.10%. Meanwhile, soyoil prices on the Chicago Board of Trade were down 0.02%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
China’s palm olein import this year could drop if palm’s premium over soybean oil continues.
Palm oil FCPOc3 may extend gains into a range of 4,106-4,158 ringgit per metric ton, driven by a powerful wave c, Reuters technical analyst Wang Tao said.
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