SINGAPORE: Malaysian palm oil futures fell on Wednesday to their lowest closing in one week, weighed by weaker rival edible oils, although losses were capped by better exports.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 31 ringgit, or 0.83% to 3,718 ringgit ($793.94) per metric ton at the close, its lowest closing since Sept. 12.
Exports of Malaysian palm oil products for Sept. 1-20 rose 2.4% to 847,890 metric tons from 827,975 metric tons shipped during Aug. 1-20, cargo surveyor Intertek Testing Services said.
Independent inspection company AmSpec Agri Malaysia reported that exports of Malaysian palm oil products for Sept. 1-20 rose 1.8% to 821,408 tonnes from 806,655 tonnes shipped during Aug. 1-20.
Dalian’s most-active soyoil contract fell 0.6%, while its palm oil contract rose 0.2%. Soyoil prices on the Chicago Board of Trade rose 0.1%.
Palm closes lower after selloff in rival oils
The contract fell in light of weaker Chicago soyoil futures overnight and Zhengzhou rapeseed oil futures, said Anilkumar Bagani, commodity research head of Mumbai-based vegetable oils broker Sunvin Group.
“However, expectations of better export outlook and some bargain buying has helped palm oil to limit the losses,” he added.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The world’s second-largest palm oil producer maintained its October export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Tuesday.
In top producer Indonesia, the Attorney General’s Office has launched a corruption investigation into the country’s palm oil fund agency, which oversees the collection and distribution of export levies on the commodity.
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