JAKARTA: Malaysian palm oil futures fell for a second straight session on Wednesday on profit taking and weaker rival edible oils, while strong palm oil exports data for August 1-20 limited losses.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange lost 24 ringgit, or 0.53%, to 4,497 ringgit ($1,064.63) a metric ton at closing.
A Kuala Lumpur-based trader said the CPO futures extended losses on profit taking after the recent rally, but recouped some of the losses on the back of good export data. “Moving forward we will track Dalian performance for lead,” the trader said.
Exports of Malaysian palm oil products in August 1-20 period rose between 13.6% and 17% from the same period last month, data from cargo surveyor Intertek Testing Services and inspection firm AmSpec Agri Malaysia showed.
Dalian’s most-active soyoil contract lost 1.61%, while its palm oil contract fell 1.1%. Soyoil on the Chicago Board of Trade (CBOT) was down 0.54%.
Palm extends gains on strong export demand, palm olein prices
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. Palm oil prices are expected to hold above 4,300 ringgit per ton in the near term on a supply slowdown and a cut in soybean availability amid demand for biodiesel, the Malaysian Palm Oil Council (MPOC) said.
Prices of coconut oil are surging in Asia, as supply shortages and booming demand for the nutrient-rich water enclosed within turn the kitchen staple into a premium product, which could drive consumers to shift to alternatives such as palm kernel oil, palm oil, soy and sunflower oil.
Palm oil FCPOc3 may fall further toward 4,388 ringgit per metric ton, near the bottom of a wave (4), said Reuters technical analyst Wang Tao.
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