Malaysian palm oil futures extended losses and booked its second weekly loss on Friday, with the market remaining range-bound as it searched for direction.

The benchmark palm oil contract FCPO1! for January delivery on the Bursa Malaysia Derivatives Exchange lost 51 ringgit, or 1.14%, to 4,420 ringgit ($1,046.40) a metric ton at the close.

The futures lost 2.06% this week.

“Today’s futures (is) still range-trading between 4,400 to 4,500 ringgit while waiting for new leads,” a Kuala Lumpur-based trader said.

Dalian’s most-active soyoil contract (DBYcv1) shed 0.15%, while its palm oil contract CPO1! gained 0.09%. Soyoil prices on the Chicago Board of Trade ZL1! were down 0.35%.

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

Oil prices were little changed on Friday, stabilising after the previous day’s surge and remaining on track for a weekly gain as fresh U.S. sanctions on Russia’s two biggest oil companies over the war in Ukraine fuelled supply concerns.

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

The ringgit USDMYR, palm’s currency of trade, strengthened 0.14% against the dollar. A stronger ringgit makes the commodity more expensive for buyers holding foreign currencies.
Source: Reuters