JAKARTA: Malaysian palm oil futures reversed gains on Monday, tracking movement of rival edible oils at the Dalian market, while poor export data weighed down and capped gains.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 35 ringgit, or 0.78%, to 4,439 ringgit ($998.65) a metric ton by the midday break.
“The futures is tracking Dalian movement as well as Malaysia’s poor export data,” a Kuala Lumpur-based trader said.
According to independent inspection company AmSpec Agri, exports of Malaysian palm oil products fell 10.1% to 396,865 tons during February 1-15, while Intertek Testing Services said it fell 7.5% to 420,677 metric tons.
Dalian’s most-active soyoil contract rose 0.97%, while its palm oil contract declined 0.2%. Soyoil prices on the Chicago Board of Trade were up 0.89%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Indonesia exported 2.06 million metric tons of crude palm oil and refined palm oil in February, a 45.1% increase from a year earlier, the statistics bureau data said on Monday.
Palm opens higher on stronger rival edible oils
Oil prices traded higher on Monday after the United States vowed to keep attacking Yemen’s Houthis until the Iran-aligned group ends its assaults on shipping.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, gained 0.05% against the dollar, making the commodity a tad more expensive for buyers holding foreign currencies.
Palm oil may rise to 4,641 ringgit per metric ton, as it has surpassed one of the key barriers at 4,562 ringgit, Reuters technical analyst Wang Tao said.
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