Source: Ukragroconsult (Ukraine)
Malaysian palm oil futures pared early gains on Wednesday and extended their decline in the third trading session as weaker rival futures from Dalian and Chicago pressured the market.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed 9 ringgit, or 0.24%, lower at 3,696 ringgit ($822.80) per metric ton. Earlier, the contract had gained 0.51 percent.
Malaysian palm oil futures rebounded with a double-digit gain after some weakness in the ringgit, a trader in Kuala Lumpur said.
The ringgit weakened 0.49 percent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
The most traded soybean oil contract in Dalian fell 1.07 percent and the palm oil CPO contract fell 1.74 percent. Soybean oil prices on the Chicago Mercantile Exchange fell by 0.33%.
Palm oil follows the price movements of competing edible oils as they compete for the global market share of vegetable oil.
Brent crude futures rose 1.14% to $77.35 a barrel by mid-morning. Stronger crude futures are making palm oil a more attractive option for biodiesel feedstock.
Malaysian palm oil stocks are expected to fall for the first time in July after rising for three months in a row, according to a Reuters poll.
The industry regulator, the Malaysian Palm Oil Board, is expected to release monthly palm oil data on August 12.