VEGOILS-Palm trades lower on profit booking after 2-session rally

(Updates with midday break prices, analyst comment) By Dewi Kurniawati JAKARTA, Jan 14 (Reuters) - Malaysian palm oil futures dipped on Tuesday as investors booked profit after two sessions of sharp gains on lower palm oil stocks and rising oil prices. The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange lost 4 ringgit, or 0.09%, to 4,496 ringgit ($999.11) a metric ton by the midday break. "The market is currently navigating a critical juncture, with bullish momentum supported by lower palm oil stocks and rising oil prices. However, concerns over palm oil's price premium relative to soybean oil are still keeping the market in check," said Darren Lim, commodities strategist at Singapore-based brokerage Phillip Nova. Malaysia's palm oil stocks declined for a third straight month in December 2024, falling 6.91% to 1.71 million metric tons, while crude palm oil production fell 8.3% and exports plunged 9.97%, data from the Malaysian Palm Oil Board showed. Cargo surveyors estimated Malaysian palm oil exports to have fallen between 21.4% and 26.8% during the Jan. 1-10 period from a month earlier. Oil prices eased but remained near four-month highs as the impact of fresh U.S. sanctions on Russian oil remained the market's key focus. O/R Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. China's soybean oil and meal futures logged their biggest daily rise since 2023 on Monday, while rapeseed meal and palm oil contracts also jumped, following a rally in the Chicago soy complex after the release of U.S. Department of Agriculture's crop data. Soyoil prices on the Chicago Board of Trade BOcv1 eased 0.57%. Dalian's most-active soyoil contract DBYcv1 rose 1.51% and its palm oil contract DCPcv1 added 0.71%. Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market. The Malaysian ringgit MYR= , palm's currency of trade, rose 0.18% against the U.S. dollar, making the commodity a tad expensive for buyers holding foreign currencies. Palm oil still targets 4,646 ringgit per ton, the peak of a wave B, according to Reuters' technical analyst Wang Tao. ($1 = 4.5000 ringgit) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ cpo https://tmsnrt.rs/3Wg4RjD ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Dewi Kurniawati; Editing by Subhranshu Sahu and Sumana Nandy) (([email protected])) ((For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01 . * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils OILS/ASIA1 Malaysian palm oil exports SGSPALM1 CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENU Dalian soyoil futures 0#DBY: Dalian refined palm oil futures 0#DCP: Zhengzhou rapeseed oil 0#COI: European edible oil prices/trades OILS/E ))