Palm falls due to profit-taking and weakness in Chicago Soyoil

Malaysian palm futures dropped on Monday, ending three sessions of gains. Profit-taking and lower Chicago soybean oil prices were to blame.

At midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for May delivery fell 18 ringgit or 0.39% to 4,607 Ringgit ($1,043.02), a metric tonne.

Anilkumar bagani, the commodity research director at Mumbai's Sunvin Group, said that during Asian hours the market traded lower due to profit-taking and weakness in Chicago Soyoil Futures.

"Crude Palm Oil Futures Ignored the Bullish Momentum Seen in Chinese Vegetable Oil Futures, Mainly Driven by China Imposing Import Tariffs on Canadian Rapeseed Meal and Rapeseed Oil."

Dalian's palm oil contract, which is the most active contract, rose by 1.62%. Chicago Board of Trade Soyoil Prices fell 1.5%

As palm oil competes to gain a share in the global vegetable oil market, it is closely tracking rival edible oils.

Malaysian Palm Oil Board data showed that Malaysian palm oil stocks fell to a 22 month low at 1.51 million metric tonnes, a decrease of 4.31% from one month earlier.

Later in the afternoon, cargo surveyors will release estimates of Malaysian palm oil imports for March 1-10.

Oil prices fell on concerns about the impact of U.S. tariffs on economic growth, fuel demand and global trade. Also, rising production from OPEC+ producers cooled investor interest in riskier assets.

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

The palm ringgit's currency, the U.S. Dollar, fell by 0.11%, lowering the price of the commodity for foreign buyers.

Technical analyst Wang Tao has said that palm oil could reach 4,716 ringgit for a metric ton due to a wave C. ($1 = 4.4170 ringgit)

(source: Reuters)