VEGOILS - Palm falls due to profit taking, Chicago soyoil weakness, and bearish MPOB stock

Malaysian palm futures ended three sessions of consecutive gains on Monday. Profit-taking and lower Chicago soyoil price pressures, as well as a slower than expected decline in inventories, were to blame.

The benchmark contract for palm oil delivery in May on the Bursa Derivatives Exchange fell 123 ringgit (2.66%) to close at 4,502 Ringgit ($1,018.32).

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 gained 0.84%, while the most active soyoil contract increased by 0.7%. Prices of soyoil on the Chicago Board of Trade fell by 2.16%.

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

Malaysian Palm Oil Board data showed that palm oil stocks in Malaysia fell for the fifth consecutive month in February, to their lowest level in 22 months, as a decline in production outweighed a decrease in exports.

Exports of palm oil products from Malaysia between March 1-10 were estimated to have fallen by 25.8% to 38.3% compared with a similar period last month.

Oil prices remained stable as investors stayed away from riskier assets due to concerns over the impact of U.S. tariffs on economic growth and fuel consumption, as well as increased output by OPEC+ producers.

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

Palm's currency, the ringgit, has weakened by 0.2% in relation to the U.S. Dollar, making it cheaper for buyers who hold foreign currencies. ($1 = 4.4210 ringgit)

(source: Reuters)