KUALA LUMPUR: Malaysian palm oil futures dipped on Friday as traders squared positions after the contract failed to breach a target price, reversing gains made earlier when it tracked strength in U.S. soyoil.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slipped towards the end of the session to close 0.05% lower at 2,022 ringgit ($487.46) per tonne.
It was up 0.6% for the week, its first weekly gain in three.
"Since the market could not breach 2,040 ringgit level, traders liquidated their long positions towards the weekend," a Kuala Lumpur-based futures trader said.
The palm futures were mostly buoyant during the session, helped by U.S. soyoil prices which was last 0.14% up.
The Chicago Board of Trade July soybean oil contract earlier rose 0.5% to its highest since April 23 on worries about the risk of reduced yields.
In other related oils, the September soyoil contract on the Dalian Commodity Exchange fell 0.5%, while the Dalian September palm oil contract was down 0.7%.
Palm oil prices are affected by movements in related edible oils, with which it competes for global market share. - Reuters