Malaysian palm oil futures were little changed on Friday, as stronger Dalian and Chicago soyoil contracts offset weaker crude oil prices.
The benchmark palm oil contract FCPO1! for October delivery on the Bursa Malaysia Derivatives Exchange was up 0.05% to 3,939 ringgit ($842.57) a metric ton by 0246 GMT.
FUNDAMENTALS
* Dalian’s most-active soyoil contract (DBYcv1) gained 1.23%, while its palm oil contract CPO1! lost 0.15%. Soyoil prices on the Chicago Board of Trade ZL1! were up 0.41%.
* Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
* Traders track movement in palm’s rival edible oils for cues in the market.
* Meanwhile, oil prices fell and were set for a second weekly decline, as mixed economic signals weighed on investor sentiment and boosted the dollar.
* Brent crude BRN1! fell 55 cents, or 0.65%, to $84.56 a barrel by 0239 GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* The ringgit USDMYR, palm’s currency of trade, weakened 0.21% against the dollar, making the commodity less expensive for buyers holding foreign currencies.
* Malaysia maintained its August export tax for crude palm oil at 8.0% and raised its reference price, a circular on the Malaysian Palm Oil Board website showed.
* Palm oil may break support at 3,913 ringgit per metric ton and fall into a range of 3,851-3,873 ringgit, Reuters technical analyst Wang Tao said.