Futures for Malaysian palm oil traded in a narrow range on Monday due to declining soybean oil prices and concerns about rising production and inventory levels, while higher crude oil prices provided some support.
The benchmark palm oil contract FCPO1 for August delivery on the Bursa Malaysia derivatives exchange rose by 2 ringgit, or 0.05%, to 3829 ringgit (908.42 USD) per metric ton at the close.
Futures for crude palm oil fell due to concerns about rising production and inventory levels in the coming weeks, while weakness in the soybean oil market also put pressure on prices, said David Ng, a private trader at Iceberg X Sdn Bhd in Kuala Lumpur.
The most active soybean oil contract in Dalian fell by 1.08%, while the palm oil contract CPO1 fell by 0.97%. The Chicago exchange is closed for a holiday.
