NEW DELHI: Malaysian palm oil futures opened down on Monday, extending losses from the previous session, as the market awaits the Malaysian Palm Oil Board’s widely-watched data on output and inventories.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 40 ringgit, or 1.03%, to 3,858 ringgit ($887.92) a metric ton in the early trade.
Fundamentals
Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly palm oil data on Tuesday, Sept. 10.
Malaysia’s palm oil inventories are expected to have climbed to a six-month high at end-August due to lacklustre export demand, a Reuters survey showed.
Malaysia’s August palm oil exports are seen at 1,376,412 tons, according to Amspec Agri.
Indonesia, the biggest palm oil exporter, plans to lower export duties to improve competitiveness and raise farmers’ income.
Exports of Malaysian palm oil products fell 9.9% to 1,445,442 tons in August from 1,604,578 tons in July, cargo surveyor Intertek Testing Services said.
Oil futures jumped by a dollar in early trading on Monday as a potential hurricane system approached the US Gulf Coast, and as markets recovered from a selloff following weaker-than-expected US jobs data on Friday.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may retest support at 3,886 ringgit per ton, a break below which could trigger a fall to 3,856 ringgit, Reuters technical analyst Wang Tao said.