JAKARTA: Malaysian palm oil futures dropped for a second session to its lowest closing in nearly four weeks on Monday, weighed by Dalian palm oil and a stronger ringgit, while market participants awaited fresh triggers to confirm a direction.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost 50 ringgit, or 1.13%, to 4,372 ringgit ($1,035.04)a metric ton at closing.
“Today, crude palm oil future is still tracking Dalian performance, while waiting for new leads on the market such as weather condition and (possible) improvement in US-China trade talks this week,” a Kuala Lumpur-based trader said.
U.S. President Donald Trump said the U.S. and China are set to “come away with” a trade deal, as he is expected to meet Chinese President Xi Jinping later this week in South Korea.
Dalian’s most-active soyoil contract was up 0.59%, while its palm oil contract lost 0.33%. Soyoil prices on the Chicago Board of Trade rose 0.77%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for October 1-25 was seen to fall between 0.3% and 0.4% from the amount shipped during September 1-25, cargo surveyors AmSpec Agri Malaysia and Intertek Testing Services said.
Oil prices rose after U.S. and China officials sketched out a trade-deal framework, easing fears that tariffs and export curbs between the world’s top two oil consumers could dent global economic growth.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit palm’s currency of trade, strengthened 0.36% against the dollar, making palm oil more expensive for buyers holding foreign currencies.
Palm oil is poised to break support at 4,409 ringgit per ton and fall towards 4,346 ringgit, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.