JAKARTA: Malaysian palm oil futures dropped on Thursday, tracking loss in the Dalian soyoil contract, while the market awaited for export and production data from the Malaysian Palm Oil Board (MPOB).
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange lost 15 ringgit, or 0.37%, to 4,067 ringgit ($864.03) a metric ton on the closing.
“The futures is influenced by external factors while waiting for the MPOB exports data and production figures for leads,” a Kuala Lumpur-based trader said.
Palm oil inventories in the world’s second-biggest producer Malaysia rose for a third consecutive month in June as exports slowed, while output fell from the previous month, a Reuters survey showed on Thursday.
Malaysia’s palm oil stocks were seen at 1.83 million metric tons, up 4.53% from May-end, according to the median estimate of 12 traders, planters and analysts polled by Reuters.
Palm ends higher on rival oils strength, production worries
The MPOB data is scheduled to be released on July 10.
Dalian’s most-active soyoil contract dropped 0.50%, while its palm oil contract gained 0.05%. The Chicago Board of Trade was closed for Independence Day holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
India’s palm oil imports rose by 3% in June from the previous month to a six-month high on robust demand from refiners for upcoming festivals and as the oil traded at a discount to rival oils.
Oil prices edged lower on Thursday, retreating from the previous session’s multi-month highs, with investors taking profits as demand caution remained in focus despite last week’s decline in U.S. inventories.
Higher crude oil futures make palm a more attractive option for biodiesel feedstock.
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