KUALA LUMPUR: Malaysian palm oil futures fell 2% on Tuesday to hit a two-week low as traders anticipate November exports to drop, while losses in rival soyaoil also weighed on the market. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 75 ringgit, or 2.25%, to 3,251 ringgit ($795.84) a tonne, its lowest close since Nov. 10.
Cargo surveyors are scheduled to release Nov. 1 to 25 export data on Thursday. Demand is expected to fall further after shipments during the first 20 days slipped 16% month-on-month, according to traders. Indonesia's unwillingness to expand its biodiesel mandate to 40% palm oil content next year and weakness in soyaoil futures also pressured palm oil prices, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Indonesia's biodiesel production during January to September period stood at 6.47 million kilolitres, while its palm oil exports for this year are estimated at 36.1 million tonnes, officials said. Dalian's most-active soyaoil contract fell 1.7%, while its palm oil contract gained 0.1%. Soyaoil prices on the Chicago Board of Trade slipped 1.3%.
Comments
Comments are closed for this article.