JAKARTA: Malaysian palm oil futures retreated on Tuesday, after closing at its highest since mid-June 2022 in the previous session, weighed down by declines in crude oil and rival vegetable oils in Dalian and Chicago.
Palm oil closed highest since mid June 2022
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost 71 ringgit or 1.37%, to 5,125 ringgit ($1,158.45) a metric ton as of 0241 GMT, snapping a four-session rally.
Fundamentals
Dalian’s most-active soyoil contract fell 2.01, while its palm oil contract slid 0.33%. Soyoil prices on the Chicago Board of Trade were down 1.58%.
Palm oil tracks price movements of rival edible oils, as it competes for a share in the global vegetable oils market.
Exports of Malaysia’s palm oil products in Nov. 1-10 period seen declining between 14.6% and 15.8% compared to the same period a month ago, according to surveyors AmSpec Agri Malaysia and Intertek Testing Services (ITS).
Malaysia’s palm oil stocks shrank the most in seven months in October as exports surged, production fell and domestic consumption increased, the country’s industry regulator said on Monday.
Oil prices inched lower in early trading, awaiting further price direction from OPEC’s monthly report after China’s stimulus plan and oversupply concerns took the wind out of markets in prior sessions.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Palm oil FCPOc3 may climb further into a range of 5,244 ringgit to 5,314 ringgit, driven by a powerful wave 3, said Reuters’ market analyst for commodities and energy technicals Wang Tao.
Source: Brecorder
