NEW DELHI: Malaysian palm oil futures declined on Tuesday, weighed down by a drop in exports of oil products in May.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed down 58 ringgit or 1.48%, at 3,863 ringgit ($822.26) a metric ton.
Weaker exports of palm oil in May dragged down prices, and expectations of a sharp rise in production also weighed on prices, said Anilkumar Bagani, research head at Sunvin Group, a Mumbai-based vegetable oil brokerage.
According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for May 1-15 fell 5.2% from the same period in April to 600,777 metric tons.
Cargo surveyor Societe Generale de Surveillance (SGS) estimates exports of Malaysian palm oil products for May 1-15 at 426,947 metric tons, according to LSEG data.
Malaysia has maintained its June export tax for crude palm oil at 8% and lowered its reference price to 3,956.06 ringgit per ton for June, compared with May’s 4,273.93 ringgit, a circular on the Malaysian Palm Oil Board’s website showed.
Palm oil ends lower with export data in focus
Soyoil prices on the Chicago Board of Trade fell 1.3%.
Soybean harvesting in flood-hit Rio Grande do Sul state reached 85% of the area, up from 78% last week, according to crop agency Emater.
Oil prices dropped by more than $1 on Tuesday, extending losses on investor expectations that lingering U.S. inflation could keep interest rates higher for longer, depressing consumer and industrial demand.
Weaker crude oil futures typically make palm a less attractive option for biodiesel feedstock.
Palm oil may rise into a range of 4,002-4,025 ringgit per metric ton, driven by a wave c.
Comments