Malaysian palm oil futures edged down on Wednesday, though remained range-bound, tracking weakness in soyaoil overnight on the US Chicago Board of Trade (CBOT) and crude oil prices. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange was down 0.4 percent at 2,175 ringgit ($529.45) a tonne at the close of trade.
Trading volumes stood at 31,538 lots of 25 tonnes each at the end of the trading day. "Palm is down tracking overnight losses in the CBOT and lower crude oil," said a Kuala Lumpur-based trader. US soyabean futures fell for the third time in four sessions on Tuesday on worries the United States and China remain far apart in resolving a bitter trade dispute that has slashed US soya imports by the world's top buyer.
The Chicago March soyabean oil contract was last up 0.3 percent. Palm oil prices are impacted by price movements of soyaoil, as they compete for a share in the global vegetable oil market. The edible oil is also affected by crude oil prices, as it is used as feedstock to make biodiesel.
US oil prices inched lower on Wednesday after gains of more 3 percent in the previous session, pressured by concerns over the outlook for the global economy. In other related oils, the May soyabean oil contract on the Dalian Commodity Exchange fell 0.1 percent, while the Dalian January palm oil contract declined 0.5 percent. Palm oil may fall into a range of 2,103-2,121 ringgit per tonne, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.