VEGOILS - Palm slides on profit-taking, Chicago soyoil
The price of Malaysian palm oils futures fell on Thursday as profit-taking and a weakening Chicago soyoil contract affected the market.
The benchmark palm-oil contract for December delivery at Bursa Malaysia's Derivatives exchange fell 14 ringgit or 0.33% to 4,182 Ringgit ($991.47) per metric ton.
Malaysian palm futures fell due to profit-taking activities following the recent gains made in the previous session. This was said by David Ng, a proprietary trading at Kuala Lumpur based trading firm Iceberg X Sdn. Bhd.
The overnight weakness of the Chicago soyoil markets also contributed to the decline.
Chicago Board of Trade soyoil fell by 0.16%. Dalian's markets for vegetable oil were closed during China's Golden Week.
As they compete to gain a share in the global vegetable oil market, palm oil monitors prices of competing edible oils.
Oil prices rose Thursday, as the threat of a wider Middle East conflict disrupting crude oil supplies from the region overshadowed an improved global supply outlook.
Brent crude futures were trading at $75.27 per barrel as of 1013 GMT, up 1.85%. Palm oil is more attractive as a biodiesel feedstock due to the stronger crude oil futures.
Palm's trade currency, the ringgit (U.S. Dollar), fell 1.2%, making it cheaper for buyers with foreign currencies.
Following calls from governments and industries around the globe, the European Commission announced that it would delay the implementation of the law prohibiting the importation of goods linked to deforestation for one year. ($1 = 4.2180 ringgit)
(source: Reuters)
