Palm drops as rival oils drag; March exports data underpin
- Meanwhile, Dalian's most-active soyoil contract slumped 3.45% and its palm oil contract lost 2.06%. Soyoil prices on the Chicago Board of Trade rebounded with a 0.67%.
JAKARTA: Malaysian palm oil futures fell on Wednesday, tracking losses in rival oils, with traders awaiting key soy planting reports from the United States, though firm palm oil exports data softened the blow.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 0.8% to 3,543 ringgit ($852.71) per tonne by midday break, extending from a 4.6% drop a day earlier.
The contract fell as much as 2.16% in the morning trade before paring some of its loses. It is on track to post a monthly drop in March.
"Our data should be supportive, with good exports while production improve in moderation, but we're highly influence by external markets," a Kuala Lumpur-based palm oil trader said.
Malaysia's March palm oil exports seen 27.6% higher compared with shipments in February, inspection company Amspec said on Wednesday, while cargo surveyor Intertek Testing Services said exports rose 26.8%.
Meanwhile, Dalian's most-active soyoil contract slumped 3.45% and its palm oil contract lost 2.06%. Soyoil prices on the Chicago Board of Trade rebounded with a 0.67%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market and soyoil prices have been influenced by expectations of higher US planting, traders said.
The US Department of Agriculture is scheduled to release its annual US planting intentions and quarterly grain stocks reports on March 31. The reports have a history of rattling the markets.
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