JAKARTA: Malaysian palm oil futures closed down for a fourth consecutive session on Thursday ahead of August supply-demand data from the Malaysian Palm Oil Board (MPOB) and as losses in rival oils weighed.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange ended 50 ringgit, or 1.29%, lower at 3,831 ringgit ($819.11) per metric ton.
Malaysia’s palm oil inventories at the end of August likely jumped to a six-month high at 1.89 million tons as output rose and exports slowed, a Reuters survey showed.
The MPOB is due to release its supply-demand data for August on Sept. 11.
“Market remains cautious ahead of the August MPOB supply and demand data. Lingering weakness could be seen in both Dalian and (Chicago Board of Trade) soybean oils,” said a Kuala Lumpur-based trader.
Dalian’s most-active soyoil contract was down 1.40%, while its palm oil contract fell 2.09%. Meanwhile, soyoil prices on the Chicago Board of Trade were down 0.74%.
Palm oil closes down on bearish polls on inventories
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Meanwhile, India’s palm oil imports are set to jump 26% to a record high for the year ending Oct. 31, 2023, as a recovery in consumption and competitive prices prompted refiners to increase purchases.
Higher purchases by India, the world’s biggest importer of palm oil, could help lower inventories in top-producing Indonesia and Malaysia and support benchmark futures.
Indonesia has set its crude palm oil reference price for the Sept. 1-15 period at $805.20 per ton and the CPO export tax and levy at $33 per ton and $85 per ton, respectively.
Palm oil may drop to 3,822 ringgit per metric ton, as pointed by a falling channel, according to Reuters analyst Wang Tao.
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