Palm falls on profit taking, weakness in Chicago soyoil, bearish MPOB stocks
KUALA LUMPUR: Malaysian palm oil futures snapped three consecutive sessions of gains on Monday, weighed down by profit-taking, lower Chicago soyoil prices and as inventories fell less than expected amid a slowdown in exports.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange slid 123 ringgit, or 2.66%, to close at 4,502 ringgit ($1,018.32) a metric ton.
The market was seen trading lower on profit taking and weakness in Chicago soyoil futures during Asian hours, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
“Crude palm oil futures ignored the bullish momentum seen in Chinese vegetable oil futures, mainly driven by China imposing import tariffs on Canadian rapeseed oil and on rapeseed meal.”
Dalian’s most-active soyoil contract rose 0.7%, while its palm oil contract added 0.84%. Soyoil prices on the Chicago Board of Trade (CBOT) fell 2.16%.
Palm oil tracks rival edible oils as it competes for a share of the global vegetable oils market.
Malaysia’s palm oil stocks fell for a fifth month in February to their lowest in 22 months as production declined, outweighing a drop in exports, data from the Malaysian Palm Oil Board (MPOB) showed.
Cargo surveyors estimated that exports of Malaysian palm oil products during March 1-10 fell between 25.8% and 38.3%, compared with the same period a month ago.
Oil prices held steady as concern over the impact of U.S. import tariffs on global economic growth and fuel demand, as well as rising output from OPEC+ producers, cooled investor appetite for riskier assets.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.2% against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.
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