JAKARTA: Malaysian palm oil futures dropped for a second session on Wednesday, weighed down by weakness in Chicago and Dalian vegetable oils, while weak export demand added pressure.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 66 ringgit, or 1.47%, to 4,413 ringgit ($1,046.48)a metric ton at closing.
“Palm prices fell on weakening Chicago soyoil prices and lower export for 1-10 days. Lower Dalian prices this morning also weighed on palm,” said a Kuala Lumpur-based trader said, adding the market will be focusing on upcoming production.
Exports of Malaysian palm oil product in the Sept. 1-10 period fell between 1.2% and 8.4% from the same period a month ago, cargo surveyor Intertek Testing Services and inspection firm AmSpec Agri Malaysia said on Wednesday.
Meanwhile, Malaysia’s palm oil stocks at the end of August surged to a 20-month high as production increased and exports slipped slightly, data from MPOB showed on Wednesday, in line with a Reuters survey.
Palm rises on stronger rival oils, crude
Dalian’s most-active soyoil contract DBYcv1 shed 1.92%, while its palm oil contract plunged 2.39%. Soyoil prices on the Chicago Board of Trade (CBOT) BOc2was down 0.2%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Palm oil may revisit its August 29 low of 4,377 ringgit per metric ton, as the downtrend from 4,614 ringgit may have resumed, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.