JAKARTA: Malaysian palm oil futures pared back some gains on Friday on early selling after jumping nearly 5% in the morning, when a recovery in soybean oil and a weaker ringgit helped prop prices.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives closed at 1.82% to 3,627 ringgit ($775.99) per metric ton in the midday break.
Futures are recovering from three straight sessions of losses.
“Overnight strength in CBOT’s soybean oil has lifted Bursa Malaysia Derivatives FCPO to open gap higher. The rise failed to sustain as some early selling interest emerged,” a Kuala-Lumpur based trader told Reuters, adding that trading volume remained low ahead of the weekend and Dalian closed.
The contract has lost 3.10% in the week.
India’s June palm oil imports to rise 46% m/m as prices fall- dealers
India’s palm oil imports in June are set to jump 46% from a month ago to their highest in three months, as buyers took advantage of a dip in prices to their lowest in 28 months to increase purchases.
Malaysia’s ringgit, the contract currency of trade, weakened to hit its lowest level since November 11, 2022 in early trade. A weaker ringgit made the contract more attractive to foreign currency holders.
Soyoil prices on the Chicago Board of Trade were up 0.67%. The Dalian Commodity was closed for the Dragon Boat Festival holidays.
Malaysia has maintained its July export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Wednesday.
Malaysian palm oil products exports for June 1-20 fell 16.8% from the same period in May, cargo surveyor Intertek Testing Services said. Cargo surveyor AmSpec Agri Malaysia said exports fell 12.9%.
Comments
Comments are closed.