JAKARTA: Malaysian palm oil futures declined on Wednesday, snapping five consecutive sessions of gains, on likely profit taking from market participants.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed at 4,082 ringgit ($865.20) a metric ton, down 7 ringgit or 0.17%.
“Profit booking activities may emerge after five days of upside,” said a Kuala Lumpur-based trader.
Dalian’s most-active soyoil contract rose 0.91%, while its palm oil contract gained 0.66%. Soyoil prices on the Chicago Board of Trade were up 1.04%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysian palm oil futures higher on rival oils strength
India’s palm oil imports rose by 3% in June from the previous month to a six-month high on robust demand from refiners for upcoming festivals and as the oil traded at a discount to rival oils.
Cargo surveyor Societe Generale de Surveillance (SGS) estimates exports of Malaysian palm oil products for June at 1,202,864 metric tons, up from 1,161,370 metric tons in May.
Meanwhile, cargo surveyors AmSpec Agri and Intertek Testing Services estimated exports fell between 11.8% to 15.4% in June.
Oil prices steadied after trading higher as industry data showed a bigger-than-expected draw in U.S. crude stockpiles, with gains capped by economic headwinds from China and the euro zone.
Higher crude oil futures make palm a more attractive option for biodiesel feedstock.
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