Palm oil ends Chicago soyoil's lower track, and profit-taking

After three sessions of gains, the price of palm oil in Malaysia fell on Wednesday due to profit-taking and lower Chicago soyoil.

The benchmark 'palm oil contract' for May delivery on the Bursa Malaysia Derivatives Exchange fell 8 ringgit or 0.19% to 4,178 Ringgit ($1,059.87), a metric tonne, at the close.

A Kuala Lumpur based trader stated that "Today's crude Palm Oil Future is tracking the soft Dalian and Chicago Soyoil in order to take profits after the recent rally and will be trading between 4,150-4300 ringgit per?ton, based on the current crude prices."

Dalian's soyoil contract, which is the most active, gained?0.46%. Palm oil, on the other hand, was up by 0.22% after falling by as much as 0.49 percent earlier in the session. Soyoil traded on the Chicago Board of Trade was down by 0.27%.

Palm oil tracks the price movement of rival edible oils in its competition for a piece of the global vegetable oil market.

A survey revealed that Malaysian palm oil inventories likely dropped for the second consecutive month in February. They reached a four-month high as seasonal production declines outweighed slower exports.

Five dealers report that India's imports of palm oil rose by 10.1% to a six month high in February, as its wider discount to rival oils encouraged refiners to "ramp up" purchases and cut imports.

The U.S. and Israel war against Iran disrupted Middle East supplies, but gains were slower than in previous sessions. This was after President Donald Trump suggested that the U.S. Navy would escort vessels through the Strait?of?Hormuz.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

(source: Reuters)