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Saturday, December 9, 2023

Palm oil hits three-month closing low

SINGAPORE: Malaysian palm oil futures ended at a three-month closing low on Thursday, mirroring steep declines in Dalian’s soyoil contract.

The last comparable trading level recorded was on June 27.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange declined 1.7%, or 62 ringgit, to 3,657 ringgit ($779.91) per metric ton at closing.

Dalian’s soyoil contract fell 3.4%, while its palm oil contract was down 1.7%. Soyoil prices on the Chicago Board of Trade (CBOT) dropped 0.8%, extending losses after a 1.8% slump overnight as the US harvest gathered pace.

A sharp drop in soyoil on CBOT and lower trading of Dalian soybean oil and palm olein fuelled bearish sentiment for palm despite improving Malaysian exports, said Dr Sathia Varqa, senior analyst with Fastmarkets Palm Oil Analytics.

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

Exports of Malaysian palm oil products for Sept. 1-20 rose 2.4% from Aug. 1-20, cargo surveyor Intertek Testing Services said on Wednesday.

Another cargo surveyor, AmSpec Agri Malaysia, said exports during the same period rose 1.8%.

Losses in the Asian equities market were also weighing on commodities including palm, Varqa said.

Palm oil hits three-month closing low

Source: Brecorder

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