Palmetto to gain nearly 21% after two years of losses
The market was lower on Tuesday due to lack of new buying at year's end.
By midday, the benchmark contract for palm oil delivery in March on the Bursa Derivatives exchange fell 53 ringgit or 1.16% to 4,498 Ringgit ($1,007.17) per metric ton.
Anilkumar bagani, the research head of Sunvin Group in Mumbai, said that futures prices were lower due to a lack of new buying from destinations markets.
Dalian's palm oil contract, which is the most active contract in Dalian, lost 1.32% and gained 0.05%. Chicago Board of Trade soyoil prices fell by 0.05%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
Early trade saw oil prices rise after data revealed that China's manufacturing sector expanded in December. However, for the second year in a row, oil is expected to finish lower because of concerns about demand in major consuming countries.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's currency rose by 0.13% to the U.S. Dollar, increasing the price of the commodity for buyers who hold foreign currencies.
The cargo surveyors estimate that Malaysian palm oil exported between Dec. 1-25 fell by 1.1% to 4% compared with a month ago. $1 = 4.4666 ringgit (Reporting and editing by Janane Venkatraman, Subhranshu S. Sahu).
(source: Reuters)
