Palm flat after four-day slide as firmer Dalian oils offset weaker crude

Malaysian palm oil futures closed unchanged on Thursday, according to Business Recorder, as firmer prices for Dalian oils balanced out weaker crude and Chicago soyoil. The December contract on the Bursa Malaysia Derivatives Exchange edged up 3 ringgit, or 0.06%, to settle at 4,771 ringgit ($1,168.22) per metric ton. Even so, the benchmark had fallen 3.4% over the previous four sessions.

Dalian's most-active soyoil contract rose 0.39% and its palm oil contract gained 0.68%, while soyoil on the Chicago Board of Trade slipped 0.03%. David Ng of Iceberg X Sdn Bhd said sentiment stayed cautious after recent declines in crude and the wider vegetable oils complex. Crude rose more than 2% as US-Iran diplomatic talks showed little sign of progress, and traders also weighed doubts over a prospective American ban on diesel exports.

Industry officials quoted by Reuters expect prices to stay under pressure because Malaysian stockpiles are growing and India's purchases remain sluggish, while El Niño's impact is yet to show. India lowered the base import tariff on crude and refined forms of palm, soy and sunflower oil late on Wednesday, aiming to ease prices before the festive peak.