Palm rangebound as weak crude oil counters stronger Dalian soyoil
Malaysian palm oil futures slipped into a tight range on Friday. NSTP/DANIAL SAAD
By Reuters
KUALA LUMPUR: Malaysian palm oil futures slipped into a tight range on Friday, pressured by weaker crude oil prices, but stronger Dalian soyoil capped the losses.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid RM1, or 0.02 per cent, to RM4,519 (US$1,069.84) a metric ton in early trade.
The contract has so far gained 0.33 per cent this week.
Dalian's most-active soyoil contract added 0.39 per cent, while its palm oil contract shed 0.11 per cent. Soyoil prices on the Chicago Board of Trade were down 0.14 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices edged lower in early trade, heading for a weekly loss, with uncertainty over global energy supplies after US President Donald Trump and Russian President Vladimir Putin agreed to meet in Hungary to discuss ending the war in Ukraine.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.02 per cent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Indonesia, the world's largest palm oil producer, is considering a plan to require international flights from Jakarta and Bali to use a 1 per cent sustainable aviation fuel blend starting from 2026, energy ministry official Edi Wibowo said.
India has raised the base import prices of gold, silver and all vegetable oils, the government said.
Palm oil may revisit its October 10 high of RM4,612 per metric ton, as suggested by a small double-bottom, Reuters technical analyst Wang Tao said.
Source: palm-rangebound-weak-crude-oil-counters-stronger-dalian-soyoil
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