JAKARTA: Malaysian palm oil futures traded in a tight range early on Wednesday, after they fell nearly 4% in the previous session, underpinned by the recovery in Chicago soyoil.
The benchmark palm oil contract
for August delivery on the Bursa Malaysia Derivatives Exchange rose 0.18% to 3,928 ringgit ($836.46) per metric ton as of 0238 GMT.
The contract was traded between 3,899 ringgit and 3,942 ringgit in early trade.
The contract lost 3.83% in the previous session, its steepest daily decline since May 31, 2023.
Fundamentals
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Dalian’s most-active soyoil contract was down 0.36%, while its palm oil contract inched higher by 0.08%. Soyoil prices on the Chicago Board of Trade were up 0.348%.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Oil prices extended losses slightly from the previous session after an industry report showed builds in US crude and fuel stockpiles, adding to concerns around demand growth. Weaker crude oil makes palm oil less attractive for biodiesel feedstock.
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European Union palm oil imports so far in the 2023/24 season that started in July had reached 3.12 million tons by June 2, lower than the 3.85 million tons imported a year earlier, data from the European Commission showed.
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India’s palm oil imports rose by 12.4% in May from the previous month to a four-month high as the recent correction in prices led to higher purchases, five dealers told Reuters.
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There will be no daily reports from Reuters markets analyst Wang Tao during June 4-17. Routine reports will resume on June 18.
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