KUALA LUMPUR: Malaysian palm oil futures fell on Thursday, extending losses to a second day, weighed by concerns over rising production in top producer Indonesia and tracking losses in rival Dalian oils.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 78 ringgit, or 2.1%, to 3,631 ringgit ($818.71) a tonne during early trade.
Fundamentals
Malaysia’s end-April palm oil inventories slumped to their lowest in 11 months, after production and exports plunged more than anticipated, data from the nation’s palm oil board showed on Wednesday.
The market is anticipating production to rise in top producers Malaysia and Indonesia in May, with a larger jump expected in larger grower Indonesia, traders and analysts said.
Palm oil climbs for fifth day on supply worries
India’s oilseed growers have urged the government to raise the import tax on palm oil, the most widely used vegetable oil, to help support thousands of local farmers reeling from a crash in domestic rapeseed prices.
Malaysian palm oil prices can rise above 4,000 ringgit per tonne in the second half of 2023 as the El Niño weather pattern develops, industry analyst Dorab Mistry said on Wednesday.
Malaysian exports of palm oil products for May 1-10 rose 10.03% to from the previous month, cargo surveyor Intertek Testing Services said on Wednesday. Another cargo surveyor, Amspec Agri, said exports rose 1.7%.
Dalian’s most-active soyoil contract fell 2.7%, while its palm oil contract were down 3.3%. Soyoil prices on the Chicago Board of Trade also dropped 0.5%.
Palm oil may break a support of 3,716 ringgit per tonne and fall towards the next support of 3,634 ringgit, Reuters technical analyst Wang Tao said.
Source: Brecorder
