Palm oil prices end lower due to weakness in soyoil at Dalian and Chicago exchanges
Malaysian palm futures ended lower on Thursday. The contract matched the losses of soyoil futures at Dalian, Chicago and Dalian.
The benchmark palm-oil contract for December delivery at the Bursa Malaysia derivatives exchange lost 41 Malaysian Ringgit (0.92%) to $4,434 ringgit (1,057.22) per metric ton.
A Kuala Lumpur based trader stated that "today's futures track the weakness from both Dalian markets and Chicago markets with soyoil as a focus."
According to a Brazilian judge's decision, he rejected a farmer group's request to overturn an injunction relating to the ban.
The moratorium is an old private agreement that has been in place for two decades and prevents soybean traders from purchasing from farmers who have cleared Amazon land since July 2008.
Chicago soybean futures declined for the second session in a row, pressured down by a weaker soyoil following a disappointing U.S. proposal on biofuels.
The U.S. Environmental Protection Agency released a proposal on Tuesday for reallocating the biofuel blending obligation waived under Small Refinery Exemption Program (SRE) to large refineries.
Dalian's palm oil contract, which is the most active contract in Dalian, fell by 2%. Chicago Board of Trade Soyoil Prices fell 0.73%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
Intertek Testing Services reports that exports of palm oil products from Malaysia for the period September 1-15 increased 2.6% over August 1-15. AmSpec Agri Malaysia is an independent inspection company and states they decreased 0.1%.
The dollar has weakened by 0.17%, which makes palm cheaper for foreign currency buyers. ($1 = 4,1940 ringgit). (Reporting and editing by Rashmi aich, Harikrishnan Nair, Dewi Kurniawati)
(source: Reuters)
