JAKARTA: Malaysian palm oil futures fell for a third consecutive week on Friday, dragged by weakness in rival vegetable oils on the Dalian Commodity Exchange although rising exports offered some support.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange lost 8 ringgit, or 0.21%, to 3,720 ringgit ($811.34) per metric ton on Friday. The contract lost 3.6% for the week.
Malaysian palm oil futures were tracking the weakness in Dalian palm oils with support from better export, said a Kuala Lumpur-based trader.
Exports of Malaysian palm oil products could rise between 5.9% and 17.5% from Aug. 1-10, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia showed.
Malaysia’s end-July palm oil inventories rose to a five-month peak on higher production, data from the country’s palm oil board showed on Thursday, but missed expectations as exports grew faster.
Malaysia’s end-July palm oil stocks at highest in five months
India’s demand for palm oil has been increasing as its discount on soyoil and sunflower oil rises.
This demand surge could assist Indonesia and Malaysia to bring down their palm oil inventories.
Dalian’s most-active soyoil contract lost 0.37%, while its palm oil contract fell 0.96%. Soyoil prices on the Chicago Board of Trade were up 0.45%.
Palm oil is affected the by price movements in related oils as they compete for a share in the global vegetable oils market.
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