Palm oil prices fall as traders wait for demand and supply data.
Malaysian palm oil futures edged lower Thursday, after two straight sessions of gains. Profit-taking was a factor and traders waited for demand & supply data which could?provide additional cues.
At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for October delivery fell 17 ringgit or 0.36% to 4,685 Ringgit ($1,146.32).
Paramalingam Supramaniam of Selangor's brokerage Pelindung Bestari said that the market was exhibiting some profit-taking as traders awaited August export data as well as demand and supply information from the Malaysian Palm Oil Association and the Malaysian Palm Oil Board.
The Malaysian Palm Oil Board will?release their data on 10th August.
The oil price remained stable amid market uncertainty over whether the talks between Iran, Oman and the Strait of Hormuz will restore the flow of oil through this Strait. Meanwhile, reports of attacks against Saudi tankers on the Red Sea and the Gulf of Aden heightened supply tensions.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
Dalian's palm oil contract, which is the most active soyoil contract, gained 0.35%. Chicago Board of Trade Soyoil Prices were down by 0.04%.
As it vies for a piece of the global vegetable oil market, palm oil closely follows?the price fluctuations of rival edible oils. The ringgit, the palm oil's currency, has gained 0.07% in value against the dollar. This makes the commodity more expensive for foreign buyers.
(source: Reuters)
