SINGAPORE: Malaysian palm oil futures fell for the fourth consecutive session on Wednesday to hit a two-month low, weighed down by soft demand and weakness in soybean prices, although data showing robust imports to India limited the losses.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange fell 36 ringgit, or 1%, to 3,624 ringgit ($780.87) a metric ton at closing.
“Currently, there is no distinct trend observable for palm oil,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. “Factors moving the market include tepid demand, expectations of a stronger ringgit, and abundant rainfall in Argentina, assisting farmers in sowing soy.”
Dalian’s most-active soyoil contract and its palm oil contract fell 1.6% and 1.8%, respectively. Similarly, soyoil prices on the Chicago Board of Trade dipped 0.9%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Abundant rainfall in Argentina’s core farming heartlands in recent weeks is favouring soybean production, and analysts expect harvest in the region to nearly double this year.
India’s palm oil imports rose in December to their highest in four months as purchases of refined palmolein surged because of competitive prices, five dealers told Reuters on Wednesday. Exports of Malaysian palm oil products for December fell between 2.1% and 9.9% from November, cargo surveyors AmSpec Agri and Intertek Testing Services said on Friday.
Indonesia has lowered its crude palm oil reference price for the Jan. 1-15 period to $746.69 a metric ton, a trade ministry official said on Friday.
The Malaysian ringgit, palm’s currency of trade, weakened 0.61% against the dollar and was headed for its worst day since early November 2023.
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