KUALA LUMPUR: Malaysian palm oil futures fell on Wednesday as weakness in rival vegetable oils in the Dalian and Chicago futures markets weighed on sentiment.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slid 44 ringgit, or 1.47%, to 3,818 ringgit ($809.76) at closing.
Weakness across rival oilseeds has strained Malaysian palm oil futures, with the contract also facing a technical correction after many days of upside, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract fell 1.04%, while its palm oil contract lost 0.44%. Soyoil prices on the Chicago Board of Trade were down 1.31%.
Palm oil is affected by the price movements in related oils as they compete for a share in the global vegetable oils market.
Palm ends higher as India extends lower duty on edible oil imports
The ringgit, palm’s currency of trade, fell 0.53% against the dollar, making the commodity less expensive for buyers holding foreign currency.
Oil fell more than $1 on Wednesday as economic growth in China, the world’s second-largest crude user, slightly missed expectations, raising concerns about future demand, while U.S. dollar strength dented investor’s risk appetite.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Exports of Malaysian palm oil products for Jan. 1-15 were estimated to be down 2.6% at 604,474 tons from a month earlier, independent inspection company AmSpec Agri Malaysia said on Monday.
Data from cargo surveyor Intertek Testing Services showed that exports for Jan. 1-15 rose 6.5% to 629,918 tons.
India will extend the lower duty on edible oil imports by another year until March 2025 as the world’s biggest vegetable oil importer moves to contain local prices.
Comments
Comments are closed for this article.