KUALA LUMPUR: Malaysian palm oil futures plunged to their lowest in two-and-a-half months on Wednesday, dragged by a larger-than-expected drop in exports during the first half of December and tracking weakness in rival soyoil.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange closed down 214 ringgit, or 4.55%, to 4,485 ringgit ($1,060.79) a tonne, its lowest closing since Sept. 29.
Earlier in the session, it fell as much as 6.1%, extending losses to a third session.
Cargo surveyors’ data showed Malaysia’s exports during Dec. 1-15 fell between 9% and 12.5% from the same period in November, more than the market had anticipated.
“Bears are trying to gain ground as bulls plan a holiday after reaching highs and have probably already sold off their fair bit,” said Sandeep Singh, director of Kuala Lumpur-based consultancy and trading firm The Farm Trade.
“We see a rush to exit spot month and not to roll position like earlier.”
Indonesia exported 3.21 million tonnes of palm oil, including refined products, in October, up 6.14% on an annual basis, data from the Indonesian Palm Oil Association (GAPKI) showed.
Dalian’s most-active soyoil contract fell 2.3%, while its palm oil contract lost 2.9%. Soyoil prices on the Chicago Board of Trade were down 1.3%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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