Palm ends lower on rival Dalian oils; higher production also weighs

Malaysian palm oil futures dropped on Monday, weighed down by weaknesses in rival edible oils on the Dalian exchange, while increased production continued to pressure prices. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost 92 ringgit, or 2.19%, to 4,115 ringgit ($974.20) a metric ton at the close. “Futures were weighed down by weaknesses in the Dalian market. There is also an increase in production, which continued to pressure prices. On the other side of the equation, we see good demand creation, which will eventually lead to better exports in November and December,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. Dalian’s most-active soyoil contract (DBYcv1) lost 0.52%, while its palm oil contract CPO1! shed 1.55%. Soyoil prices on the Chicago Board of Trade (CBOT) 1> fell 0.35%. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable ...