AVN 65.00 Increased By ▲ 0.83 (1.29%)
BAFL 31.15 Increased By ▲ 1.25 (4.18%)
BOP 4.71 Increased By ▲ 0.08 (1.73%)
CNERGY 3.88 Decreased By ▼ -0.01 (-0.26%)
DFML 13.70 Increased By ▲ 0.35 (2.62%)
DGKC 41.27 Increased By ▲ 0.42 (1.03%)
EPCL 46.69 Decreased By ▼ -0.31 (-0.66%)
FCCL 11.42 Increased By ▲ 0.42 (3.82%)
FFL 5.04 Decreased By ▼ -0.04 (-0.79%)
FLYNG 5.82 Increased By ▲ 0.05 (0.87%)
GGL 9.95 Increased By ▲ 0.20 (2.05%)
HUBC 64.10 Increased By ▲ 2.15 (3.47%)
HUMNL 5.65 No Change ▼ 0.00 (0%)
KAPCO 27.80 Increased By ▲ 0.22 (0.8%)
KEL 2.13 Decreased By ▼ -0.02 (-0.93%)
LOTCHEM 24.30 No Change ▼ 0.00 (0%)
MLCF 21.40 Increased By ▲ 0.68 (3.28%)
NETSOL 84.20 Increased By ▲ 1.10 (1.32%)
OGDC 87.94 Increased By ▲ 1.89 (2.2%)
PAEL 10.90 Increased By ▲ 0.10 (0.93%)
PIBTL 4.18 Increased By ▲ 0.04 (0.97%)
PPL 77.70 Increased By ▲ 1.51 (1.98%)
PRL 13.62 Decreased By ▼ -0.04 (-0.29%)
SILK 0.89 No Change ▼ 0.00 (0%)
SNGP 41.93 Increased By ▲ 1.18 (2.9%)
TELE 5.87 Decreased By ▼ -0.01 (-0.17%)
TPLP 15.78 Increased By ▲ 0.13 (0.83%)
TRG 112.30 Increased By ▲ 2.20 (2%)
UNITY 13.95 Increased By ▲ 0.20 (1.45%)
WTL 1.13 Decreased By ▼ -0.02 (-1.74%)
BR100 4,048 Increased By 80.6 (2.03%)
BR30 14,467 Increased By 282.1 (1.99%)
KSE100 40,673 Increased By 801.8 (2.01%)
KSE30 15,190 Increased By 292.7 (1.96%)
Follow us

Malaysian palm oil futures ended 5% down on Monday, as crude oil prices crashed after Saudi Arabia slashed its official rates in a market rattled by the impact of the coronavirus outbreak. The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange closed down 123 ringgit, or 5.02%, at 2,328 ringgit ($552.58).

Palm oil fell as much as 10% earlier in the session, to touch its lowest price since October 2019. The contract has already been under pressure on worries over the economic impact of the coronavirus outbreak, which has now spread rapidly beyond China.

Oil prices fell about 27% on Monday, the most since 1991, after Saudi Arabia started a price war with Russia by slashing its selling prices and pledging to unleash pent-up supply onto a market reeling from falling demand because of the virus. Weak crude oil futures make palm a less attractive option for biodiesel feedstock.

"Despite expectations of lower month-on-month Malaysian February palm oil inventories, I expect palm oil price to remain under pressure in the short term as long as crude oil price remains low," said Oscar Tjakra, senior analyst at Rabobank's RaboResearch Food & Agribusiness.

February stockpiles are likely to drop 1.4% to 1.73 million tonnes from January, according to a Reuters survey. Official palm oil data will be published by the Malaysian Palm Oil Board on Tuesday. Palm oil gained 5.7% last week as demand from Africa and the Middle East picked up ahead of the Muslim holy month of Ramadan, countering fears over the impact of the coronavirus epidemic.

Dalian's most-active soyaoil contract traded 3.97% lower, while its palm oil contract fell 4.96%. Soyaoil prices on the Chicago Board of Trade were down 3.93%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Copyright Reuters, 2020

Comments

Comments are closed.

Malaysian palm oil drops 5 percent

Govt offers its SOE stakes to 2 UAE firms

Death toll in Peshawar mosque suicide blast passes 90

Inflationary pressure expected to calm down gradually: Finance Division

Intra-day update: rupee sees some improvement against US dollar

Intra-day update: Bull run at PSX, KSE-100 up over 800 points

Pakistan’s performance worsens, rank remains same in corruption perception index

Barrick makes first payment of $3mn to Balochistan govt

Indus Motor to shut down plant for two weeks

Toshakhana case: Islamabad court decides to indict Imran Khan on February 7

Atlas Honda increases motorcycle prices in Pakistan by up to Rs30,000