JAKARTA: Malaysian palm oil futures closed on Monday at their lowest in three months, as crude and rival vegetable oil prices weakened on concerns that surging Omicron cases globally would hurt demand amid projections of soft December exports.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange fell 2.56% to 4,295 ringgit ($1,016.57), the lowest closing since Sept. 21.
Cargo surveyors’ data showed on Monday Malaysia’s exports during Dec. 1-20 fell between 5.1% and 6.61% from the same period in November.
Dalian’s soyoil contract fell 1.91%, while soybean oil prices on the Chicago Board of Trade for May delivery fell 1.87%.
Meanwhile, oil prices slumped as surging Omicron infections stoked worries that new restrictions may hit fuel demand.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market, while weaker crude oil futures typically make palm a less attractive for biofuel.
“Another reason came in the decision taken by India’s finance ministry to suspend the futures trading in crude palm oil, soybean complex and rapeseed complex futures for one year,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
India’s market regulator ordered a year-long suspension of futures trading in key farm commodities on Monday as the world’s biggest importer of vegetable oils struggles to tame food inflation.
Comments
Comments are closed.