SINGAPORE: Malaysian palm oil futures finished more than 1% lower on Monday following reports of lacklustre exports this month, although gains in competing edible oils on the Dalian Commodity Exchange limited the downward trend.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange dropped 51 ringgit, or 1.29%, to 3,911 ringgit ($840.71) per metric ton.
Exports of Malaysian palm oil products during Aug. 1-25 were seen falling between 4.3% and 7.8% from a month-ago period, independent inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services said on Friday.
Indonesia’s palm oil exports, including refined products, in June stood at 3.45 million tons, while the stock by the end of June was at 3.69 million tons, data from the Indonesian Palm Oil Association showed.
Good demand from China and Europe for the forward month is keeping prices stable, while India will likely see stronger demand given the festive season, said Mitesh Saiya, trading manager at Mumbai-based firm Kantilal Laxmichand and Co.
Palm posts second week of gains on stronger rival oils
Dry weather in the U.S. Midwest last week has been stressing bean crops, so both soybean and palm prices are projected to rise in the coming weeks, Saiya added.
Dalian’s most-active soyoil contract rose 0.2%, while its palm oil contract climbed 0.3%. Soyoil prices on the Chicago Board of Trade lost 0.4%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The Malaysian ringgit, palm’s currency of trade, weakened 0.3% against the dollar. A weaker ringgit generally makes palm oil more attractive for foreign currency holders.
Palm oil may break resistance at 4,000 ringgit per metric ton and rise into a 4,080-4,135 ringgit range, said Reuters technical analyst Wang Tao.
Comments
Comments are closed for this article.