Mumbai, 24 April (CommoditiesControl): Palm oil prices settled down on Wednesday, erasing early gains to reverse a two-day surge amid waning strength in soyoil and crude oil, while a stronger ringgit further weighed on investor sentiment.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives (BMD) Exchange closed down 28 ringgit, or 0.71%, at 3,943 ringgit ($825.76) a metric ton.
Dalian's most-active soyoil contract and palm oil contract closed afternoon trade higher at 0.92% and 0.86%, respectively. CBOT soyoil prices dropped 0.59%.
Soybeans, used to derive soyoil, edged down as dealers assessed prospects for U.S. planting weather this week.
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 were stable above $88 a barrel on Wednesday, after industry data showed a surprise drop in U.S. crude stocks last week and a drop in business activity from the world's largest oil consumer.
The Malaysian ringgit strengthened 0.06% against the dollar. A stronger ringgit makes palm oil less attractive to foreign currency holders.
Malaysia's meterological agency increased the issuance of Level 1 hot weather alerts to over 20 areas on Tuesday evening. Hot weather negatively affects palm yields.
(By Commoditiescontrol Bureau; +91-9820130172)
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