Mumbai, 22 March (Commoditiescontrol):
BMD CPO futures settled down on Friday to mark its first weekly loss in five as it consolidated after a recent bullish episode, while lower edible and crude oil prices added to the decline.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange settled down 62 ringgit or 1.46% at 4,187 ringgit ($884.27) a metric ton, the lowest close since March 13.
The most active contract dropped 2.33% compared to last week, its first weekly decline since Feb. 23.
The market is in a "consolidation mode" after a general uptick in prices since early March, which was "basically premised on supply constraints both in Malaysia and Indonesia", a broker said.
While a gradual increase in palm production is anticipated moving forward, expectations of higher Indonesian tax and levy in April will likely keep prices supportive, he added.
Dalian's most-active soyoil contract decreased 1.06%, while its palm oil contract lost 1.1%. Soyoil prices on the Chicago Board of Trade fell 1.19%.
Palm oil normally takes directions from the price movements in related oils as they compete for a share in the global vegetable oils market.
Crude oil prices sank on the possibility of a nearing ceasefire in Gaza, which could ease geopolitical concerns in the Middle East, and as a stronger U.S. dollar and faltering U.S. gasoline demand weighed. O/R Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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