KUALA LUMPUR: Malaysian palm oil futures slipped on Monday, pressured by weak demand from key destination market, India.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange shed 26 ringgit, or 0.6%, to 4,342 ringgit ($963.18) a metric ton at the close. The contract rose 0.81% in the previous session.
“The weakness seen in the palm market is due to export concerns,” a Kuala Lumpur-based trader said.
Exports of Malaysian palm oil products for December fell between 2.5% and 7.8%, according to cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
India’s palm oil imports in December plunged to their lowest in nine months as a rally in prices to a 2-1/2-year high prompted refiners to increase purchases of substitute soyoil that was available at a discount, five dealers said last Friday.
Dalian’s most-active soyoil contract fell 1.43%, while its palm oil contract added 0.02%. Soyoil prices on the Chicago Board of Trade climbed 1.45%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices eased, pressured by a strong dollar, but remained at their highest since mid-October as colder weather spurred buying while further support came from expectations of tighter sanctions on Iranian and Russian oil exports.
The ringgit, palm’s currency of trade, weakened 0.24% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Comments
Comments are closed.