JAKARTA: Malaysian palm oil futures closed lower on Wednesday, the lowest level in 17 weeks, weighed down by rival oils at Dalian exchange and high October end-stocks, while the market awaited fresh monthly data.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost 34 ringgit, or 0.82%, to 4,109 ringgit ($972.77) a metric ton at the close.
“The prices traded marginally higher by midday as the market awaited fresh palm data and news. Upside movement remained capped by lingering concerns over elevated palm end stocks of October,” a Kuala Lumpur-based trader said.
The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly data on November 10.
Malaysia’s palm oil inventories likely climbed to a two-year high in October, as production surged to its strongest level in seven years, outpacing export demand.
Stockpiles are projected to have risen 3.5% during the month to 2.44 million tons, the highest since October 2023.
Dalian’s most-active soyoil contract dropped 0.05%, while its palm oil contract fell 0.72%. Soyoil prices on the Chicago Board of Trade (CBOT) gained 0.73%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Meanwhile, India’s palm oil imports fell to a five-month low in October, dragging total purchases in the 2024-25 marketing year to a five-year low, as buyers switched to soyoil after a rally in palm prices, according to five dealers.
The ringgit palm’s currency of trade, strengthened 0.14% against the dollar, making palm oil less attractive to buyers holding foreign currencies.
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