JAKARTA: Malaysian palm oil futures inched higher on Thursday, after the previous session’s losses, tracking movement in rival soyoil on the Dalian Commodity Exchange.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 1 ringgit, or 0.02%, to 4,064 ringgit ($989.29) a metric ton at the close.
Dalian’s most-active soyoil contract gained 0.5%, while its palm oil contract rose 0.44%. Soyoil prices on the Chicago Board of Trade fell 0.82%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
China’s state stockpiler Sinograin sold most of the soybeans it offered in an auction of state reserves, two traders said on Thursday, making room for an expected influx of U.S. cargoes amid abundant local supplies.
Meanwhile, Malaysia’s palm oil stocks hit a more than six-and-a-half-year high in November, as production outpaced weak exports, industry regulator’s data showed on Wednesday.
Malaysia’s palm oil production is on track to exceed 20 million metric tons this year for the first time, supported by more efficient harvesting, improved labour availability and output from maturing plantations.
Exports of Malaysian palm oil products for December 1-10 fell 10.3% compared with November 1-10, independent inspection company AmSpec Agri Malaysia said, while according to Intertek Testing Services they fell 15%.
The Malaysian ringgit, palm’s currency of trade, strengthened 0.19% against the U.S. dollar, making the commodity more expensive for foreign currency holders.
Oil prices eased on Thursday as investors shifted focus back to Russia-Ukraine peace talks and monitored potential fallout from a U.S. seizure of a sanctioned oil tanker off the coast of Venezuela.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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