SINGAPORE: Malaysian palm oil futures closed lower on Tuesday, amid weakness in rival edible and crude oil, although losses were limited by strong export data.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 26 ringgit, or 0.7%, to 3,690 ringgit ($787.12) a metric ton at closing.
According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for Sept. 1-25 rose 17.5% to 1.1 million tons from 974,235 tons shipped during Aug. 1-25.
According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products rose 15.2% to 1.09 million tons from 945,155 tons shipped during the same period in August.
The US Department of Agriculture said soybean harvests advanced more slowly last week than analysts had expected.
Dalian’s most-active soyoil contract fell 0.2%, while its palm oil contract was down 0.4%. Soyoil prices on the Chicago Board of Trade were up 0.3%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices fell on Tuesday as a stronger US dollar compounded concerns that demand for fuel will be held back by major central banks holding interest rates higher for longer.
The Malaysian ringgit, palm’s currency of trade, weakened 0.1% against the dollar, and last traded at 4.69 ringgit. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Source: Brecorder
