KUALA LUMPUR: Malaysian palm oil futures fell on Monday as a sharp rise in May production and inventories, amid a slump so far in June exports, weighed on prices.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 19 ringgit, or 0.56%, to 3,348 ringgit ($725.15) per metric tonne.
Exports of Malaysian palm oil products for June 1-10 fell 17.6% from the same period in May, independent inspection company AmSpec Agri Malaysia said on Saturday. Another cargo surveyor, Intertek Testing Services said shipments fell 16.7%.
Malaysia’s end-May palm oil inventories rose for the first time in four months, up 12.63% from April to 1.69 million metric tonnes, according to Malaysian Palm Oil Board (MPOB) data released during the midday break.
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Production swelled 26.8% to 1.52 million metric tonnes, but exports were down 0.78% to 1.08 million tonnes, MPOB said.
Dalian’s most-active soyoil contract rose 1%, while its palm oil contract gained 0.1%. Soyoil prices on the Chicago Board of Trade were down 0.8%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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