Palm rangebound as Dalian oils fall, Chicago soyoil rises
JAKARTA: Malaysian palm oil futures were rangebound on Thursday, as weakness in Dalian vegetable oils and a stronger ringgit weighed while Chicago soyoil lent some support.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 9 ringgit, or 0.23 per cent, to 3,848 ringgit (US$910.12) a metric ton by 0235 GMT.
The contract was traded between 3,820 ringgit and 3,853 ringgit.
Dalian's most-active soyoil contract was down 0.23 per cent while its palm oil contract lost 0.12 per cent. Soyoil on the Chicago Board of Trade (CBOT) gained 0.12 per cent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices edged higher on Thursday to their highest in more than two months, after US President Donald Trump said US personnel were being moved out of the Middle East, which raised fear that escalating tensions with Iran could disrupt supply.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Malaysian ringgit, the contract currency of trade, strengthened 0.24 per cent against the US dollar, making the contract more expensive for foreign currency holders.
Palm oil may retest the support level of 3,812 ringgit per metric ton, with a good chance of breaking below it and falling towards 3,768 ringgit.
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