BEIJING: Malaysian palm oil futures traded in a tight range on Thursday after slumping to their lowest in over six weeks, squeezed by expectations of slowing demand after the end of the Eid al-Fitr festive season.
Malaysian palm oil extends losses
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange dipped 4 ringgit, or 0.1%, to 4,008 ringgit ($838.14) a metric ton during early trade, hovering near 3,986 ringgit - its lowest closing level since March 5.
Fundamentals
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India’s oilmeal exports in 2023/24 jumped 13% from a year ago to reach the highest level in a decade as shipments of soymeal more than doubled, a leading industry body said Wednesday.
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Oil prices rose in early trade on Thursday, slightly paring the previous session’s losses after the United States said it would reinstate oil sanctions on Venezuela, while the European Union talked of fresh curbs on Iran.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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Dalian’s most-active soyoil contract fell 0.4%, while its palm oil contract lost 0.8%. Soyoil prices on the Chicago Board of Trade were up 0.2%.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Palm oil may retest support at 3,969 ringgit per metric ton, possibly breaking it and falling further to the 3,926-3,942 ringgit range, Reuters technical analyst Wang Tao said.
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