Palm slips as traders wait for demand and supply data

Malaysian palm oil futures fell on Thursday, after two sessions of gains. Profit-taking was a factor as participants waited for demand and supply data.

By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for October delivery had fallen 25 ringgit (0.53%) to 4,677 Ringgit ($1,144.92).

Paramalingam Supramaniam is the director of Selangor's brokerage Pelindung Bestari. He said that the market was experiencing some?profit taking? as traders awaited August export data as well as demand and supply information from the Malaysian Palm Oil Board. The Malaysian?Oil?Board is expected to release their data on August 10th. The oil prices have been trending lower after the progress of Iran-Oman negotiations. Investors are cautiously awaiting signs of progress towards a U.S. Iran peace deal, and progress toward reopening the Strait of Hormuz.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

Dalian's most active palm oil contract increased by 0.10%, while the soyoil contract dropped 0.02%. Chicago Board of Trade soyoil prices were down by 0.55%.

As it competes to gain a share in the global vegetable oil market, palm oil monitors?the movements of edible oils.

The palm's currency, the ringgit, has strengthened by 0.12% against the dollar, making the commodity slightly cheaper for buyers who hold foreign currencies.

(source: Reuters)