Palm ends flat as traders await MPOB demand and supply data

Malaysian palm oil futures closed flat on Tuesday, according to Business Recorder, with the November contract on Bursa Malaysia Derivatives Exchange slipping 1 ringgit, or 0.02%, to 4,977 ringgit ($1,226.77) per metric ton. Support came from concerns over weather that could curb output, along with firmer soyoil values, while market participants waited for demand and supply figures due from the industry regulator this week.

David Ng, a proprietary trader at Iceberg X Sdn Bhd, linked the intraday gains to ongoing El Nino weather worries and robust soybean oil. The Malaysian Palm Oil Board is expected to publish August figures on Thursday. Overseas benchmarks rose as well, with Dalian's most-active soyoil contract up 0.51%, its palm oil contract adding 1.37%, and Chicago soyoil up 0.82%.

Crude oil prices climbed to multi-week peaks after Houthi forces aligned with Iran struck Saudi energy sites, while Tehran warned the United States of economic warfare. Firmer crude tends to make palm more appealing as a biodiesel input. The ringgit lost 0.32% against the dollar. Industry officials told Reuters that India's heavy buying of vegetable oils has congested major ports, pushing back vessel unloading for up to 10 days.