Palm slips in second session as profit taking weighs
Malaysian palm futures closed 'lower' for the second session in a row - on Wednesday - as traders booked profits. However, concerns about El Nino impacting production supported the market.
At the close, the benchmark contract for?palm?oil delivery in November on the Bursa Derivatives exchange fell 9 ringgit or 0.18% to 4,967 Ringgit ($1,220.99) per metric ton.
Paramalingam Supramaniam is the director of brokerage Pelindung Bestari. He said that the market continues to be prone for profit-taking but that the overall trend remains bullish.
He said that the market was also waiting for data from Malaysian Palm Oil Board (MPOB). This would give a more accurate picture.
MPOB will release its August supply and demand data Thursday.
Benchmark Brent crude futures rose past $100 per barrel, reaching a?six-week high. They also broke the symbolic threshold of $100 for the first since July 24, as the intensifying conflict in Middle East increased concerns about oil flow from the region.
Palm oil is a better option for biodiesel because crude oil futures are stronger.
Dalian's palm oil contract dropped 1.09%, while the most active soyoil contract in Dalian fell 0.73%. Prices of soyoil on the Chicago Board of Trade rose by 0.35%.
Palm oil monitors?the price?movements?of rival edible oils as it competes to gain a share in the global vegetable oils?market.
Palm's trade currency, the ringgit (US dollar), has weakened by?0.27%, making it slightly cheaper for buyers who hold foreign currencies.
Energy Ministry presentation to a Parliament hearing revealed that Indonesia used 10,7?million kilograms of palm-oil-based biodiesel?from early January until the beginning of September?as it launched its B50 blend across the country.
(source: Reuters)
