JAKARTA: Malaysian palm oil futures fell for a third straight session on Thursday and ended at their lowest closing price in more than three months, dragged down by weakness in rival vegetable oils and muted demand.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange lost 86 ringgit, or 2.01%, to 4,182 ringgit ($929.33) a metric ton at closing.
“Today’s crude palm oil drop is tracking Dalian performance due to festivity season ending soon,” a Kuala Lumpur-based trader said, adding that weak demand pressured the contract.
Exports of Malaysian palm oil products during Jan. 1-15 are estimated to have fallen between 15.5% and 23.7%, according to cargo surveyors Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
India’s palm oil imports are set to plunge to a near five-year low in January, hit by negative refining margins as the tropical oil’s premium over rivals drives buyers to more competitively priced soyoil, government and industry officials told Reuters.
Expectations of improving Malaysian palm oil production in the coming months due to good weather also dragged prices lower, the trader said.
Soyoil prices on the Chicago Board of Trade shed 0.88%. Dalian’s most-active soyoil contract lost 0.72%, while its palm oil contract fell 1.81%.
Palm oil tracks price movements in rival edible oils as it competes for a share of the global vegetable oils market.
Comments