Palm Oil Ends Little Changed as Two-Week Rally Spurs Selling

Dec 30, 2013 6:30 am ET

Dec. 30 (Bloomberg) -- Palm oil ended little changed after a second straight weekly advance spurred some investors to lock in gains.

The contract for March delivery closed at 2,631 ringgit ($799) on the Bursa Malaysia Derivatives, erasing gains of as much as 0.7 percent. Futures increased 7.9 percent this year, set for the first annual gain since 2010.

“It looks like some people are booking profit after recent increases ahead of the new year holiday,” said Gnanasekar Thiagarajan, a director at Commtrendz Risk Management Services Pvt. in Mumbai.

Palm entered a bull market in November as output fell at plantations in Indonesia, the biggest supplier, and biodiesel demand increased. Prices may climb to 3,000 ringgit by March as demand increases for the commodity used in food and fuel, according to Dorab Mistry, director at Godrej International Ltd.

Soybean oil for March delivery was little changed at 39.32 cents a pound on the Chicago Board of Trade. Soybeans fell 0.5 percent to $13.07 a bushel.

Refined palm oil for May delivery gained 0.3 percent to 6,066 yuan ($1,001) a ton on the Dalian Commodity Exchange. Soybean oil fell 0.2 percent at 6,908 yuan.

--Editor: Thomas Kutty Abraham