Palm oil tracks rival edible oils and crude lower; heads for weekly gain

JAKARTA: Malaysian palm oil futures fell on Friday, tracking weaker rival edible oils on the Dalian and Chicago exchanges and crude oil, but remained on track for a weekly gain. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 30 ringgit, or 0.61%, to 4,906 ringgit ($1,203.93) a metric ton by the midday break. The contract has gained 1.91% so far this week. “FCPO futures remained in negative territory on Friday, mirroring selling pressure across the broader commodity complex during Asian trading hours,” a Kuala Lumpur-based trader said. Dalian’s most-active soyoil contract fell 1.56%, while its palm oil contract lost 1.64%. Soyoil prices on the Chicago Board of Trade were down 0.74%. Palm oil tracks rival edible oils, as it competes for a share of the global vegetable oils market. Market participants are closely monitoring an official announcement from the Indian government on a potential reduction in import tariffs, which could have implications for Malaysian palm oil demand, the trader said. Oil prices fell for a third day as easing concerns over Saudi supply disruptions outweighed anxiety about a widening Middle East conflict