Palm snaps three-day rally on weaker soyoil; exports rise
- Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
KUALA LUMPUR: Malaysian palm oil futures fell from a more than eight-year high on Tuesday, tracking weakness in rival soybean oil and crude, even as data showed exports rose in the first half of December.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange (BMD) slid 26 ringgit, or 0.75%, to 3,430 ringgit ($844.20) a tonne by the midday break, snapping a three-day rally.
"Profit taking in CBOT soybean oil dragged prices lower in BMD, coupled with rumours of possible export tax announcement for Malaysian crude palm oil exports in January," a Kuala Lumpur-based trader said.
Malaysia is expected to announce its crude palm oil export duty for January this week, effectively ending a six-month export-duty exemption.
"Nearby prices trying to adjust before any announcement," the trader said.
Palm hit its highest since May 2012 in the previous session, buoyed by hopes of a rise in Malaysia's Dec. 1-15 exports of the vegetable oil.
Exports during that period rose between 8.7% and 9.8% from the same period in November, cargo surveyors said.
Palm imports into the European Union and Britain in the 2020/21 season that started in July totalled 2.74 million tonnes, up 7% compared with the same period last year, official EU data showed on Monday.
Dalian's most-active soyoil contract fell 0.2%, while its palm oil contract gained 0.8%. Soyoil prices on the Chicago Board of Trade were down 0.5%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices dipped on demand worries due to tighter lockdowns in Europe, making palm a less attractive option for biodiesel feedstock.
Comments
Comments are closed.