VEGOILS - Palm slips due to profit-taking; ringgit firm, still on track for third weekly gain

Malaysian palm futures declined?on friday amid profit-taking, but they remained on course for a third weekly gain. The benchmark April palm oil contract on the Bursa Derivatives exchange fell 30 ringgit or 0.71% to 4,167 Ringgit ($1,041.75) per metric ton at?midday.

This week, the contract has increased by 2.6%.

A Kuala Lumpur based trader said that investors?booked their profits before the weekend, and the stronger ringgit has?snapped up the recent rally.

The palm ringgit's currency, the dollar, has strengthened by 0.94%, increasing the price of the commodity for buyers holding foreign currencies. Dalian's soyoil contract, which is the most active contract in Dalian, rose by 0.07% while palm oil contracts fell by 0.04%. Chicago Board of Trade soyoil prices were down by 0.07%.

Palm oil follows the price movement of rival edible oils as it competes to gain a share in the global vegetable oil?market. Prices of oil rose after U.S. president Donald Trump reiterated threats against Iran, a major Middle Eastern producer. This sparked fears that military action could disrupt supplies.

The?palm is a better option for biodiesel because crude oil futures are stronger. Technical analyst Wang Tao believes that palm oil could fall to?4,132 per metric tonne after failing to break through a resistance level of 4,211 ringgit.

(source: Reuters)