JAKARTA: Malaysian palm oil futures closed lower on Wednesday after the monthly supply and demand data from the Malaysian Palm Oil Board (MPOB) showed the country’s palm oil stocks in November were at their highest level in more than six-and-a-half years.
It rose 13 percent from the previous month to 2.84 million metric tons, the highest since March 2019, MPOB said.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 45 ringgit, or 1.1 percent, to 4,061 ringgit (USD986.64) a metric ton at the close.
Rising inventories in the world’s second-biggest producer of the tropical oil could weigh on benchmark Malaysian futures FCPOc3, which are trading near a five-month low.
Dalian’s most-active soyoil contract fell 0.1 percent, while its palm oil contract dropped 1.25 percent. Soyoil prices on the Chicago Board of Trade rose 0.24 percent.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for December 1-10 fell 10.3 percent to 396,477 metric tons from 442,028 tons shipped during November 1-10, independent inspection company AmSpec Agri Malaysia said on Wednesday.
The Malaysian ringgit, palm’s currency of trade, weakened 0.07 percent against the US dollar, making the commodity slightly cheaper for foreign currency holders.