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VEGOILS-Palm sheds early gains on lower Chicago soyoil, crude costs

Malaysian palm oil futures eliminated early gains to trade lower on Thursday, as the agreement tracked weaker Chicago soyoil and crude prices, while a. stronger ringgit also added to the down trend.

The benchmark palm oil contract for August shipment. on the Bursa Malaysia Derivatives Exchange dipped 6 ringgit, or. 0.15%, to 3,957 ringgit ($ 840.66) a metric load by midday break.

Dalian's most-active soyoil agreement was flat,. while its palm oil agreement acquired 0.3%, as of 0613. GMT. Soyoil rates on the Chicago Board of Trade fell. 0.3% as soybeans extended their downward trend.

Palm oil is affected by cost motions in related oils as. they contend for a share in the international veggie oils market.

Improving seasonal palm production, combined with much better. need from India on account of palm being conductively priced. versus competing oils has actually produced a stability in. markets, said Pranav Bajoria, director at Singapore-based. brokerage Comglobal Pte Ltd.

. Malaysian palm oil looks to be trading within a variety of. 3850 ringgit to 4050 ringgit per ton, with palm being about. $ 100 marked down to unrefined soybean on a CNF basis, Bajoria included.

Oil rates fell in early trade on Thursday, as investors. digested that the U.S. Federal Reserve had likely pressed back a. possible interest rate cut to December, while sufficient U.S. crude. and fuel stocks likewise weighed on the market.

Weaker petroleum futures make palm a less appealing option. for biodiesel feedstock.

The Malaysian ringgit, palm's currency of trade,. strengthened 0.17% versus the dollar. A stronger ringgit makes. palm oil less attractive for foreign currency holders.

Agricultural commodity merchant Louis Dreyfus Company (LDC). is broadening its palm oil refining company in Indonesia, which. will include building and construction of a new glycerine plant and greater. production of biodiesel, a senior company official stated.

(source: Reuters)