Palm oil prices fall due to mix-trading in rival oils

Malaysian palm futures fell on Thursday, after a previous session that saw them rise. This was due to mixed trading of rival oils.

The benchmark contract for palm oil delivery in January on Bursa Derivatives Exchange dropped 34 ringgit or 0.79% to 4,277 Ringgit ($993.03), a metric tonne, at the close.

On Wednesday, the contract rose by 0.91%.

A Kuala Lumpur based trader said that the closing market today did not reach its morning high due to mixed trading in rival oilseeds.

Dalian's palm oil contract, which is the most active contract, fell by 0.18%. Chicago Board of Trade soyoil prices were up by 0.12%.

As they compete to gain a share in the global vegetable oil market, palm oil monitors prices of competing edible oils.

Oil prices were largely flat on Thursday, as investors awaited developments in the Middle East and the release of official U.S. inventory data.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

Palm's trade currency, the ringgit (U.S. Dollar), has fallen by 0.4%, resulting in a lower price for foreign currency buyers.

In a joint statement, the European Union ambassadors said they had agreed to postpone the implementation of a landmark law on deforestation by one year until the end of December 2020. ($1 = 4.3070 ringgit)

(source: Reuters)