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Thursday, October 6, 2022

Palm tracks soyoil higher but set for 9% weekly loss

KUALA LUMPUR: Malaysian palm oil futures gained on Friday tracking Chicago soyoil, but the market was set for a 9% weekly loss on expectations of rising supplies.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 74 ringgit, or 1.94%, to 3,895 ringgit ($874.30) a tonne by the midday break.

Malaysia’s palm oil inventories at end-July likely jumped to an eight-month high due to improving production and soaring imports, a Reuters survey showed on Thursday.

But production worries due to workers shortages are raising concerns about the quality of the processed crude palm oil and yields are on the decline, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Palm oil may retest support at 3,717 ringgit

The Malaysian Palm Oil Board is scheduled to release its data next week.

Exports from Malaysia during Aug. 1-5 rose 24.5% from the same week in July, cargo surveyor Intertek Testing Services said.

Traders are expecting higher overseas shipments from Indonesia after the country lowered its crude palm oil export duty reference price for Aug. 1-15, making its products more competitive than Malaysian palm oil.

Dalian’s most-active soyoil contract fell 1.3%, while its palm oil contract gained 2.2%. Soyoil prices on the Chicago Board of Trade were up 1.7%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm tracks soyoil higher but set for 9% weekly loss

Source: Brecorder

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