Mumbai, 05 Dec (Commoditiescontrol): Malaysian crude palm oil (CPO) futures traded within a narrow range on Thursday, with prices influenced by weakness in Dalian’s palm oil contracts and forecasts of lower November inventories in Malaysia, the world’s second-largest palm oil exporter.
The benchmark February CPO contract on the Bursa Malaysia Derivatives Exchange closed marginally higher, gaining 6 ringgit, or 0.12%, to settle at 5,038 ringgit ($1,137.76) per metric ton. During the session, the contract fluctuated within a range of 4,988 to 5,107 ringgit after declining 0.85% in the previous session.
In global markets, Dalian’s most-active palm oil contract dropped 1.46%, while its soyoil counterpart slipped 0.58%. On the Chicago Board of Trade (CBOT), soyoil futures edged up 0.31%, reflecting modest support. Palm oil prices are closely tied to movements in rival edible oils as the commodities compete for a share in the global vegetable oil market.
As per media report, the Malaysia’s palm oil inventories would decline for the second straight month in November, as heavy rainfall hampered production. However, the strengthening Malaysian ringgit, which rose 0.49% against the U.S. dollar during early trade, added pressure on CPO prices by making the commodity less attractive to foreign buyers.
Meanwhile, oil prices rose ahead of a key OPEC+ meeting, with market participants awaiting decisions on supply cuts amid ongoing geopolitical tensions in the Middle East. This, in turn, supported the broader edible oil complex, as palm oil is often linked to crude oil prices due to its use in biodiesel production.
From a technical perspective, palm oil futures are expected to retest the resistance level of 5,162 ringgit per metric ton, potentially driven by a wave 5 pattern, according to analysts. Market sentiment remains cautious as traders monitor developments in inventories, currency movements, and broader commodity trends.
(By Commoditiescontrol Bureau: 09820130172)
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