JAKARTA: Malaysian palm oil futures fell nearly 2% on Tuesday after rising for two straight sessions, as profit-taking and weaker export data weighed.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange lost 82 ringgit, or 1.94%, to 4,148 ringgit ($978.53) a metric ton at the close.
The market is focusing on profit-taking following softer Dalian palm oil, a Kuala Lumpur-based trader said. According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for the July 1-15 period fell 5.3% compared to June 1-15 period, while according to cargo surveyor Intertek Testing Services, it fell 6.2%. Dalian’s most active soyoil contract was up 0.3%, while its palm oil contract ticked up 0.07%. Soyoil prices on the Chicago Board of Trade were down 0.46%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices fell on Tuesday after US President Donald Trump’s lengthy 50-day deadline for Russia to end the Ukraine war and avoid sanctions eased immediate supply concerns.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, strengthened 0.26% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
India’s palm oil imports jumped to an 11-month high in June as refiners ramped up purchases due to a price discount compared to rival soyoil and sunflower oil, and to replenish depleted inventories.
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