Palm trades in tight range as strong crude oil counters sluggish exports

Malaysian palm oil futures traded in a tight range on Wednesday, as stronger crude oil prices supported the market, while concerns over sluggish exports and elevated inventories continued to weigh. The benchmark palm oil contract FCPO1! for March delivery on the Bursa Malaysia Derivatives Exchange gained 3 ringgit, or 0.08%, to 3,965 ringgit ($970.39) a metric ton at the close. The contract fell 1.39% in the last three consecutive sessions and hit a six-month low. The market remains concerned about the weak exports and high stock levels in the country, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd. However, the rebound in Chicago soybean oil and crude oil markets kept prices supported, Ng added. Dalian’s most-active soyoil contract (DBYcv1) fell 0.89%, while its palm oil contract CPO1! shed 1%. Soyoil prices on the Chicago Board of Trade ZL1! were down 0.17%. Palm oil tracks price movements of rival edible oils, as it competes for a share ...