BEIJING: Malaysian palm oil futures fell for a fifth straight session on Thursday, pressured by expectations of rising output and slowing demand after the end of the Eid al-Fitr festive season.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed down 23 ringgit or 0.57%, at 3,989 ringgit ($834.34) a metric ton, marking its worst falling streak since early-December.
Exports from the world’s second-largest producer had jumped 28.61% on-month to 1.32 million metric tons in March, on the back of higher demand during Ramazan and Eid al-Fitr celebrations.
However, traders said demand is expected to ease as the festivities wrap up, and amid more attractive pricing against rival vegetable oils.
A Russian drone attack on Ukraine’s Ivano-Frankivsk region targeted critical infrastructure on Thursday, with debris causing fires, the governor said.
Geopolitical tensions and missile attacks on Ukraine on port infrastructure will create logistical issues, which could trigger bullishness in the vegetable oils market, said Mitesh Saiya, trading manager at Kantilal Laxmichand & Co.
Dalian’s most-active soyoil contract fell 0.08%, while its palm oil contract lost 0.9%. Soyoil prices on the Chicago Board of Trade rose 0.5%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market. India’s oilmeal exports in 2023/24 jumped 13% from a year ago to their highest in a decade as shipments of soymeal more than doubled, a leading industry body said on Wednesday.
Oil prices extended losses after a 3% drop in the previous session, as investors switched focus to signs that a wider conflict in the key Middle East could be avoided, as well as demand concerns.
Comments
Comments are closed for this article.