Malaysian palm oil falls on weaker rival oils, export data eyed

Malaysian palm oil futures eased on Thursday, ending a three-session rally, as softer competing vegetable oils in Dalian and Chicago pulled prices down, Business Recorder reported. In the midday session, the December benchmark on the Bursa Malaysia Derivatives Exchange shed 34 ringgit, or 0.72 per cent, and was priced at 4,666 ringgit ($1,143.63) per metric ton. Traders were also waiting for export figures that could provide fresh direction for demand.

A Kuala Lumpur trader said the market was tracking losses in Dalian, where the most-active soyoil contract dropped 1.66 per cent and palm contracts fell 2.15 per cent. Chicago soyoil also weakened, down 0.64 per cent on the Chicago Board of Trade, while crude oil slid more than 1 per cent as investors weighed Strait of Hormuz shipping attacks against US efforts to ease vessel sanctions. Lower crude values also make palm a less appealing biodiesel feedstock.

Malaysia reduced the reference price for crude palm oil for November, retaining the export duty at 10 per cent, according to a notice posted on the website of the Malaysian Palm Oil Board on Wednesday. The ringgit, the currency in which palm is traded, rose 0.02 per cent against the dollar, making the commodity marginally dearer for buyers holding other currencies.