KUALA LUMPUR: Malaysian palm oil futures fell on Monday as investors turned cautious ahead of data on early November output and offset support from stronger rival oils.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange eased 1.5% to 4,951 ringgit ($1,193.01) a tonne. It gained 9.31% for October.
Palm oil looks neutral in a range of 4,909-5,048 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
While continued strength in rival oils could keep underlying sentiment upbeat, market players may also be cautious ahead of November palm oil production figures, three Kuala Lumpur-based traders said.
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“Market came off likely due to an improvement seen in production. Market has been expecting negative growth,” one of the traders said, referring to October output data from the Southern Peninsula Palm Oil Millers’ Association.
Dalian’s palm oil contract eased 0.27%, while its most-active soyoil contract fell 1.03%. Soyoil prices on the Chicago Board of Trade declined 0.23%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Source: Brecorder
