Palm falls on weak rival oil prices, export data
Malaysian palm oil futures fell to the lowest in more than three months on Thursday, dragged down by weakness in rival vegetable oils and low export in the first half of January.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange lost 61 ringgit, or 1.43%, to 4,207 ringgit ($935.93) a metric ton by midday.
“Today’s crude palm oil drop is tracking Dalian performance due to festivity season ending soon,” a Kuala Lumpur-based trader said, adding that weak demand pressured the contract.
Exports of Malaysian palm oil products during Jan. 1-15 are estimated to have fallen between 15.5% and 23.7%, according to cargo surveyors Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
Expectation of improving Malaysian palm oil production in coming months due to good weather also dragged prices lower, the trader said.
Soyoil prices on the Chicago Board of Trade shed 0.88%. Dalian’s most-active soyoil contract lost 0.72%, while its palm oil contract fell 1.81%.
Palm oil tracks price movements in rival edible oils as it competes for a share of the global vegetable oils market.
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