JAKARTA: Malaysian palm oil futures traded lower on Monday, extending losses for a second session trailing weakness in Chicago soyoil as the Chinese closed for a long holiday.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 65 ringgit, or 1.73%, to 3,702 ringgit ($785.15) a metric ton when the market closed.
Palm oil futures dropped 6.06% in September after posting two consecutive monthly gains.
“Malaysia crude palm oil futures were seen trading sharply lower today in absence of any fresh buying as key destination China is on holidays and Chicago soyoil futures continued to show a selloff since last week,” said Anilkumar Bagani, commodity research head at the Mumbai-based Sunvin Group
The Dalian Commodity Exchange is closed from Sept. 29 to Oct. 6 for the Mid-Autumn Festival and National Day. Soyoil prices on the Chicago Board of Trade edged down 0.38%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for September were seen rising between 5.4% and 8.1%, independent inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services data showed.
Indonesia raised its crude palm oil reference price to $827.37 a ton for the Oct. 1-15 period, which kept export tax and levy for crude palm oil unchanged at $33 and $85 per ton.
Malaysian palm oil is expected to trade between 3,700 to 4,500 ringgit ($790-$960) per ton from now until mid-2024, as an El Niño weather pattern threatens supplies amid rising demand, analyst said.
Palm oil may drop into a range of 3,716-3,741 ringgit per ton, as its bounce from 3,637 ringgit has completed around a resistance at 3,859 ringgit.
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