Mumbai, 22 March (Commoditiescontrol):
Palm oil futures at Malaysian exchange slipped on Friday with the market set for its first weekly loss in five as it consolidated after a recent bullish episode, while lower edible and crude oil prices also added to the decline.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives (BMD)Exchange slipped 3 ringgit, or 0.07% to 4,246 ringgit ($896.16) a metric ton at midday.
The most active BMD CPO contract is likely to register 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 dropped 0.88%, while its palm oil contract was down 0.84%. Soyoil prices on the Chicago Board of Trade lost 0.88%.
Palm oil 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. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The Malaysian ringgit weakened 0.53% against the dollar.
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