KUALA LUMPUR: Malaysian palm oil fell on Thursday to reverse some of the gains in the previous session following news of a large Indonesian biodiesel deal, as ample supplies prompted some traders to lock in profits.
The January benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange fell 0.6 percent to end at 2,345 ringgit ($546.37) a tonne.
"Next week is Diwali, so there is some profit taking ahead of that," said a trader based in Kuala Lumpur, referring to the Hindu festive celebration. "This is usually a demand driven
market, and at the moment supply is more."
Palm gained over 2 percent on Wednesday after top exporter
Indonesia announced the companies that had won quotas to supply
biodiesel to state-owned energy firm Pertamina.
News that Pertamina does not expect to import any
gasoil in 2016 given government rules to encourage the use of
biodiesel also supported prices of palm oil, which is used for
blending into biodiesel.
Traders however had said palm's rally on Pertamina's news
wouldn't last long unless it sees concrete demand from top
consumers China and India.
Traded volume stood at 45,497 lots of 25 tonnes each, above
the average 35,000 lots usually traded in a day.
Signals are mixed for palm oil as it faces resistance at
2,373 ringgit per tonne, said Reuters market analyst for
commodities and energy technicals Wang Tao.
In other vegetable oil markets, the U.S. December soyoil
contract fell 0.1 percent, while the January soybean oil
contract on the Dalian Commodity Exchange gained 0.6
percent.
Palm, soy and crude oil prices at 1039 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV5 2259 +14.00 2259 2259 10
MY PALM OIL DEC5 2280 -21.00 2279 2319 1909
MY PALM OIL JAN6 2345 -15.00 2345 2386 28772
CHINA PALM OLEIN JAN6 4350 -6.00 4338 4406 1061026
CHINA SOYOIL JAN6 5608 +32.00 5590 5646 749570
CBOT SOY OIL DEC5 28.48 -1.10 28.46 28.78 5866
INDIA PALM OIL NOV5 404.80 -1.10 404.10 408.00 1537
INDIA SOYOIL NOV5 626.50 -2.35 625.30 629.70 13200
NYMEX CRUDE DEC5 46.41 +0.09 46.20 46.65 31034
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 4.2920 ringgit)
($1 = 65.7500 Indian rupees)
($1 = 6.3459 Chinese yuan)
- Reuters
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