JAKARTA: Malaysian palm oil futures dropped on Monday, tracking weakness in rival oils, even as cargo surveyor data showed firmer exports for the first 10 days of December.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange lost 3.28% to 3,864 ringgit ($875.20) per tonne by the midday break, heading for its worst session since Dec. 1.
Palm was down due to “spillover weakness from the Dalian Commodity Exchange” after a bearish monthly world agricultural supply and demand estimates report from the US Department of Agriculture dragged down the commodity market on Friday, said a trader in Kuala Lumpur.
Dalian’s most active soyoil contract dropped 3.59%, while its palm oil contract plummeted by 6.68% and was headed for its worst session in five months.
Soyoil prices on the Chicago Board of Trade fell 0.83%, extending a 2.12% drop from Friday. Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Meanwhile, exports of Malaysian palm oil products for Dec. 1-10 rose 5.6% from the same period a month earlier, cargo surveyor Intertek Testing Services said on Saturday, while AmSpec Agri Malaysia reported a 14.3% increase.
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Market participants were also waiting for the release of Malaysia Palm Oil Board data due on Tuesday, the trader added.
A Reuters survey had showed end-November palm oil stocks likely eased from the previous month, while exports were expected to have risen 3%.
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