Palm falls on profit-taking as traders await demand, supply data
- Dalian’s most-active soyoil contract gained 0.29%
KUALA LUMPUR: Malaysian palm oil futures edged lower on Thursday after two straight sessions of gains, as profit-taking weighed and traders awaited demand and supply data that could provide further cues.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 17 ringgit, or 0.36%, to 4,685 ringgit ($1,146.32) a metric ton at the close.
The market is seeing some mild profit-taking, with traders waiting for August export figures as well as demand and supply data from the Malaysian Palm Oil Board and Malaysian Palm Oil Association, said Paramalingam Supramaniam, director of the Selangor-based brokerage Pelindung Bestari.
The Malaysian Palm Oil Board is expected to release its data on August 10.
Oil prices held steady amid market caution over whether talks between Iran and Oman will restore flows through the Strait of Hormuz, while reports of attacks on Saudi tankers in the Red Sea and Gulf of Aden renewed supply tensions.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Dalian’s most-active soyoil contract gained 0.29%, while its palm oil contract added 0.35%. Soyoil prices on the Chicago Board of Trade were down 0.04%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. The ringgit, palm’s currency of trade, strengthened 0.07% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.