JAKARTA: Malaysian palm oil futures fell for the sixth consecutive day on Monday after data from the Malaysian Palm Oil Board (MPOB) showed an increase in inventories and declining exports in the world’s second-biggest producer of the oil.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange lost 116 ringgit, or 3.03%, to 3,714 ringgit ($794.78) per metric ton on its closing. The contract declined 5.20% last week.
Malaysia’s palm oil stocks at the end of August rose 22.5 from the previous month to 2.12 million tons, which is the highest in seven months, MPOB data showed.
“Palm oil continues its weak trend due to much higher MPOB end stocks in August and optimism of continued better production in September,” said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading company.
Crude palm oil production gained 8.9% from July to 1.75 million tons in August, while palm oil exports fell to 1.22 million tons, the MPOB said.
Comments
Comments are closed.