Palm oil trades lower after sell-off in rival soyoil

Malaysian palm oil futures fell on Monday after a sell-off in rival soyoil, while the market awaits the Malaysian Palm Oil Board’s widely-watched data on output and inventories.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was down 6 ringgit, or 0.15%, at 3,892 ringgit ($894.10) a metric ton by the midday break.

Crude palm oil futures are trading lower after a sell-off in soyoil in Chicago, said Anilkumar Bagani, research head at Sunvin Group, a Mumbai-based vegetable oil brokerage.

The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly palm oil data on Tuesday, Sept. 10.

Malaysia’s palm oil inventories are expected to have climbed to a six-month high by the end ofAugust due to lacklustre export demand.

The country’spalm oil exports for August are seen at 1,376,412 tons, according to Amspec Agri.

Indonesia, the biggest palm oil exporter, plans to lower export duties to improve competitiveness and raise farmers’ income.

Exports of Malaysian palm oil products fell 9.9% to 1,445,442 tons in August from 1,604,578 tons in July, cargo surveyor Intertek Testing Services said.

Oil futures jumped during Asiantrade on Monday as a potential hurricane system approached the U.S. Gulf Coast, and as markets recovered from a sell-offfollowing weaker-than-expected U.S. jobs data on Friday.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Palm oil FCPOc may retest support at 3,886 ringgit per ton, a break below which could trigger a fall to 3,856 ringgit.

Asian share markets slipped on Monday as worries about U.S. and Chinese growth weighed on sentiment, though U.S. and European stock futures did manage a bounce while bond yields came off their lows.

For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.

It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.

You are welcome to get a 7-day free demo access!!!

Tags: futures, benchmark contract, soyoil, Crude palm oil, Malaysia, palm oil