JAKARTA: Malaysian palm oil futures closed down on Monday, snapping two sessions of gains as a stronger ringgit dented appetite, while traders were cautious ahead of supply-demand data due next month.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 38 ringgit or 1.01%, to 3,737 ringgit ($785.08) a metric ton.
“Prices failed to sustain as local currency appreciated today. Market players also awaiting export data and MPOB supply and demand data,” a Kuala Lumpur-based trader told Reuters.
The Malaysian ringgit, palm’s currency of trade, strengthened 0.34% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
The Malaysian Palm Oil Board (MPOB) data is expected to be published on Nov. 10.
Palm oil up on higher Dalian prices, weak demand limits gains
Rival vegetable oils were stronger, with soyoil on the Chicago Board of Trade rising 0.67%, Dalian’s most-active soyoil contract rising 1.03%, and its palm oil contract up 0.53%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Indonesia’s August palm oil exports, including refined products, stood at 2.07 million metric tons, down 55% from the same month last year, association GAPKI said on Friday.
Indonesia, the world’s biggest palm oil producer, on Friday flew its first commercial flight using palm-oil blended jet fuel on a Boeing 737-800NG aircraft operated by flag carrier Garuda Indonesia from capital Jakarta to Surakarta in Central Java.
Malaysian palm oil product exports for Oct. 1-Oct. 25 were estimated to have fallen between 1.1% and 3.1% from a month earlier, data from independent inspection company AmSpec Agri Malaysia and Intertek Testing Services showed on Wednesday.
Comments
Comments are closed.