KUALA LUMPUR: Malaysian palm oil futures closed lower for a third straight session on Monday, pressured by a drop in prices of other edible oils, though higher exports limited declines.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 22 ringgit, or 0.59%, to 3,695 ringgit ($800.65) per metric ton.
Easing Dalian palm futures, a correction in crude oil prices and downward momentum in cash market prices for Black Sea sunflower oil and South American soy oil has resulted in lower palm oil prices, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
“However, stronger August 1-10 palm oil export performance and the weaker ringgit is seen keeping the flocks together for Malaysian palm oil futures,” he added.
Palm posts third weekly loss on rival oils
India’s July palm oil imports jumped 59% from the previous month to 1.08 million metric tons, the highest in seven months, as refiners increased buying after a widening of its discount to rival oils, the Solvent Extractors’ Association of India said.
Palm oil exports from Malaysia over Aug. 1-10 rose 5.9% from the same period in July, cargo surveyor Intertek Testing Services said on Thursday.
Another cargo surveyor, AmSpec Agri Malaysia, said exports jumped 17.5%.
Uncertainties in Black Sea regions are still injecting volatility into the global vegetable oil markets, Bagani added.
The most-active soyoil contract on the Dalian exchange rose 0.83% while its palm oil contract lost 0.46%. Soyoil prices on the Chicago Board of Trade were up 1%.
Palm oil is affected by price movements in related oils that compete for a share in the global vegetable oils market.
Crude oil prices, meanwhile, stabilised on Thursday after seven weeks of gains, making palm oil a less attractive option for biodiesel feedstock.
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