JAKARTA: Malaysian palm oil futures slipped on Friday, on track to book its second weekly loss, with the market range-bound as it searched for direction.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost 29 ringgit, or 0.65%, to 4,442 ringgit ($1,051.61) a metric ton by the midday break.
The futures has lost 1.57% so far this week.
“Today’s futures (is) still range-trading between 4,400 to 4,500 ringgit while waiting for new leads,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract gained 0.17%, while its palm oil contract gained 0.37%.
Soyoil prices on the Chicago Board of Trade were down 0.45%. Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices dipped in early trade on Friday, trimming part of the previous day’s surge but remaining on track for a weekly gain, as fresh US sanctions on Russia’s two biggest oil companies over the war in Ukraine fuelled supply concerns.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.12% against the dollar.
A stronger ringgit would make the commodity more expensive for buyers holding foreign currencies.
Palm oil may break resistance at 4,471 ringgit per metric ton and rise into 4,490 ringgit to 4,510 ringgit range, Reuters technical analyst Wang Tao said.
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