Palm oil surrenders early gains on weaker rival contracts
07/08/2024 (Reuters), Kuala Lumpur - Malaysian palm oil futures gave up early gains onWednesday to extend losses to a third session, as weaker rivals Dalian and Chicago contracts weighed on the market.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange closed 9 ringgit, or 0.24% lower at 3,696 ringgit ($822.80) a metric ton. The contract gained 0.51% earlier in the session.
Malaysian palm oil futures had recovered with a double-digit upside after seeing some weakness in the ringgit currency, a Kuala Lumpur-based trader said.
The ringgit MYR=, palm's currency of trade, weakened 0.49%against the dollar, making the commodity less expensive for buyers holding foreign currencies.
Dalian's most-active soyoil contract DBYcv1 fell 1.07%,while its palm oil contract DCPcv1 lost 1.74%.Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.33%.
Palm oil tracks the price movements of rival edible oils as they compete for a share of the global vegetable oils market.
Brent crude futures LCOc1 gained 1.14%to $77.35 a barrel by 1007GMT. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. O/R
Palm oil inventories in Malaysia are expected to drop in July for the first time after rising for three consecutive months, a Reuters survey showed.
Industry regulator the Malaysian Palm Oil Board is scheduled to release its monthly palm oil data on Aug. 12.
($1 = 4.4920 ringgit)