JAKARTA: Malaysian palm oil futures declined for a third consecutive session on Thursday, weighed down by weakness in prices of rival Dalian-listed vegetable oils and selling pressure in crude palm oil (CPO).
The Bursa Malaysia Derivatives Exchange’s benchmark palm oil contract was down 82 ringgit or 1.64%, to 4,905 ringgit ($1,093.40) a metric ton by the midday break.
The CPO market has been on the receiving end from the incessant selling pressure, which is generating buying interest for local olein and keeping offers elevated, said said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Dalian’s most-active soyoil contract dropped 1.7%, while its palm oil contract fell 0.8%. Soyoil prices on the Chicago Board of Trade were up 0.49%. Palm oil tracks price movements of rival edible oils, as it competes for a share in the global vegetable oils market.
India’s palm oil imports in October rose 60% from September to 845,682 tons on festive demand and higher purchases by refiners to replenish stocks depleted by lower-than-usual imports recently, the Solvent Extractors’ Association of India said.
Indonesia’s government reaffirmed to lawmakers a plan to implement a 40% mandatory biodiesel mix with palm oil-based fuel, known as B40, in January 2025, as part of the new administration’s “quick wins” programmes.
Exports of Malaysian palm oil products in the Nov. 1-10 period are seen falling between 14.6% and 15.8%, compared with the same period a month ago, according to surveyors AmSpec Agri Malaysia and Intertek Testing Services (ITS).
Palm oil ends low on heavy losses at Dalian rival oils
Oil prices slipped in early trade on Thursday, reversing most of the previous session’s gains, weighed down by worries of higher global production amid slow demand growth, with a firmer dollar exacerbating the declines.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Palm oil may test support at 4,795 ringgit per metric tonne, with a good chance of breaking below it and falling towards 4,655 ringgit, according to Reuters technical analyst Wang Tao.
Source: Brecorder
