SINGAPORE: Malaysian palm oil futures fell for a second consecutive session on Tuesday, weighed down by concerns over rising stockpiles and weakness on the Dalian.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 59 ringgit, or 1.6%, to 3,679 ringgit ($772.57) a metric ton at closing.
The benchmark contract also logged a second consecutive month of losses, falling 2.4% in October.
Exports of Malaysian palm oil products for October rose between 6.6% and 8.9% from a month earlier, cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia said on Tuesday.
Meanwhile, Indonesia’s August palm oil exports eased 55% on year to 2.07 million metric tons, association GAPKI said on Friday.
Expectations of greater output are outweighing rise in exports, resulting in higher end-of-month stock levels, said Sathia Varqa, senior analyst with Fastmarkets Palm Oil Analytics.
Palm oil closes lower on strong ringgit, supply-demand data in focus
Large losses on the Dalian amid China’s economic woes are also weighing on palm futures, Sathia added.
China’s manufacturing activity unexpectedly returned to contraction in October, an official factory survey showed on Tuesday.
Dalian’s most-active soyoil contract fell 1.2%, while its palm oil contract was down 2.5%.
The U.S. soybean harvest continued to progress ahead of the average pace despite rains in the last week. A quick harvest pace is likely to boost supplies of the oilseed and its products, including soyoil.
Prices of soyoil on the Chicago Board of Trade fell 0.6%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The Malaysian ringgit, palm’s currency of trade, last traded flat against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Comments
Comments are closed for this article.