Mumbai, May 8 (Commoditiescontrol) - Malaysian palm oil futures concluded a two-day upward trend, closing lower on Wednesday amidst subdued prices of competitor soybean oil and persistent apprehensions regarding palm exports.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed down 61 ringgit, or 1.55%, at 3,869 ringgit ($816.24) per metric ton.
Dalian's most-active soyoil contract experienced a marginal decline of 0.13%, while its palm oil contract decreased by 0.24%. Additionally, soyoil prices on the Chicago Board of Trade witnessed a decline of 1.17%.
Soybeans continued their downward trajectory as the impact of the Brazilian flood appeared less severe than initially anticipated.
According to the sources, Palm is beginning to be quoted at a discount to alternative soft oils on account of improved seasonal production prospects.
Oil prices experienced a downturn amidst a build-up in both crude and fuel inventories in the U.S., coupled with cautious supply expectations preceding an OPEC+ meeting next month. Weaker crude oil futures render palm a less appealing option for biodiesel feedstock.
Malaysia intends to employ "orangutan diplomacy" with major palm oil importing nations, aiming to address concerns regarding the environmental impact of palm cultivation.
For cautious traders, securing profits around 3870 levels could be a prudent approach, while others might opt to hold their positions until the price achieves its target of 3835.
Global Palm oil and Soy oil Futures
(By Commoditiescontrol Bureau; +91-9820130172)
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