Palm rangebound as firmer Chicago soyoil offsets crude oil

By Reuters News

KUALA LUMPUR, Oct 5 (Reuters) - Malaysian palm oil futures were rangebound on Monday, as firmer Chicago soyoil countered weaker crude oil prices, with traders also awaiting fresh Malaysian Palm Oil Board data amid thin trading due to a China market holiday.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange traded between 4,535 ringgit and 4,570 ringgit a metric ton by the midday break. The contract rose 11 ringgit, or 0.24%, to 4,546 ringgit a metric ton on the day.

The market traded sideways as Chinese markets were closed and traders awaited MPOB's demand and supply data, while stronger Chicago soyoil futures supported, said Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group.

Brent slipped as rising crude exports from the Middle East and a release of oil stocks from Group of Seven nations are adding to supplies despite ongoing concerns about further damage to Gulf oil infrastructure amid the Iran war. O/R

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Soyoil prices on the Chicago Board of Trade were up 0.83%. The Dalian Commodity Exchange is closed for a public holiday and will reopen on October 8.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

The ringgit , palm's currency of trade, weakened 0.1% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Danantara Sumberdaya Indonesia, a company established by the Indonesian government to supervise commodity exports, has started the test phase for a new monitoring platform aimed at boosting price transparency, the firm said.

Palm oil may test a support at 4,499 ringgit per metric ton; a break below could open the way towards 4,445 ringgit, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.0850 ringgit)


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