KUALA LUMPUR: Malaysian palm oil futures had their worst day in a month on Monday after conflicting data on August exports so far, with weaker crude and soyoil also denting sentiment.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 294 ringgit, or 6.67%, to 4,113 ringgit ($922.82) a tonne.
Exports of Malaysian palm oil products during Aug. 1 to 15 rose 2.8% from the same week last month, cargo surveyor Intertek Testing Services said.
Cargo surveyor Amspec Agri Malaysia, however, said exports during the same period fell 1.9%.
Palm ends week higher amid demand optimism, strength in rival oils
Indonesia will set crude palm oil reference price at $900.52 per tonne for Aug. 16 to 31, up from $872.27 per tonne in the first half of the month, Musdhalifah Machmud, a senior official at economics ministry said.
A drop in crude, metals and gas is pushing agricultural commodities lower as well, said Mohsin Mohammad, director at Selangor-based cooking oil exporter Sarafiah Natural Resources.
US soybean production will be bigger than previously forecast as better-than-expected yields will more than make up for a cut to acreage, the US government said on Friday.
Soyoil prices on the Chicago Board of Trade were down 3.1%. Dalian’s most-active soyoil contract fell 1.1%, while its palm oil contract slipped 0.5%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices fell by more than $3 a barrel on concerns over demand in China, the world’s largest crude importer, and ahead of Iran’s response to a nuclear deal proposal which could raise the country’s oil exports.
Weaker crude makes palm a less attractive option for biodiesel feedstock.
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