Palm oil slumps 4% to over one-week low as July exports decline
- Exports of Malaysian palm oil products for July fell between 5.0% and 7.7% from June, cargo surveyors said on Saturday
KUALA LUMPUR: Malaysian palm oil futures fell about 4% on Monday to a more than one-week low, weighed down by a drop in July exports and weakness in competing oils on the Dalian and Chicago exchanges.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 185 ringgit, or 4.23%, to 4,184 ringgit ($990.53) a tonne in early trade to hit its lowest since July 23 after rising 2.3% last week.
FUNDAMENTALS
Exports of Malaysian palm oil products for July fell between 5.0% and 7.7% from June, cargo surveyors said on Saturday.
Oil prices fell by more than $1 on worries over China's economy after a survey showed growth in factory activity slipped sharply in the world's second-largest oil consumer, with concerns compounded by a rise in oil output from OPEC producers.
- Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Dalian's most-active soyoil contract fell 3.1%, while its palm oil contract slipped 3.3%. Soyoil prices on the Chicago Board of Trade were down 0.7%.
Palm oil may fall to 4,287 ringgit
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may fall to 4,287 ringgit per tonne, as it failed again to rise above the May 12 high of 4,525 ringgit, Reuters technical analyst Wang Tao said.
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