Malaysian palm oil futures ended higher on Thursday, reversing earlier losses despite weakening demand from India and growing pressure from cheaper soyoil.

The benchmark palm oil contract FCPO1! for January delivery on the Bursa Malaysia Derivatives Exchange was up 6 ringgit, or 0.13%, at 4,518 ringgit ($1,069.35) a metric ton at the close.

The market traded lower following news that India’s palm oil imports fell to a four-month low, while cheaper soybeans and soybean oil squeezed demand for palm oil, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari.

India’s palm oil imports in September dropped to their lowest point since May as refiners shifted to cheaper soyoil, whose shipments hit a more than three-year high, the Solvent Extractors’ Association of India said.

Dalian’s most-active soyoil contract (DBYcv1) rose 0.15%, while its palm oil contract CPO1! slid 0.04%. Soyoil prices on the Chicago Board of Trade ZL1! were up 0.47%.

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

Meanwhile, oil prices were stable as market traders prepared for a potential halt to India’s Russian oil imports, which could boost demand for supplies from elsewhere. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit USDMYR, palm’s currency of trade, strengthened 0.09% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Source: Reuters