SINGAPORE: Malaysian palm oil futures fell on Friday amid lower edible and crude oil prices, with the market set for a weekly decline, although a weaker ringgit limited losses.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 21 ringgit, or 0.49% to 4,228 ringgit ($892.36) a metric ton in morning trade.
Malaysian palm oil futures easier
It had slid 0.19% during overnight trade.
The contract is set for a weekly loss of about 1%.
Fundamentals
-
contract was down 0.86%. Soyoil prices on the Chicago Board of Trade lost 0.74%.
-
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
-
Oil prices sank on the possibility of a nearing Gaza ceasefire, which could ease geopolitical concerns in the Middle East, at the same time a stronger US dollar and faltering US gasoline demand weighed on prices.
-
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
-
The Malaysian ringgit, palm’s currency of trade, weakened 0.55% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
-
Palm oil may retrace into the 4,190-4,212 ringgit range again, following its failure to break resistance at 4,326 ringgit per ton, said Reuters technical analyst Wang Tao.
Comments
Comments are closed for this article.