KUALA LUMPUR: Malaysian palm oil futures extended losses for a second straight session on Thursday as sluggish demand pressured prices.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange slid 59 ringgit, or 1.36%, to 4,295 ringgit ($954.44) a metric ton at the close.
The contract lost 0.25% on Wednesday.
Traders are awaiting signs of market recovery after the recent rout, however, demand remains weak and continues to put pressure on prices, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
“Authorities in Indonesia have also been looking into ways to curb used cooking oil exports, but the extent of the tightening is not immediately clear.”
Indonesia has curbed exports of used cooking oil and palm oil residue to ensure supply to domestic cooking oil and biodiesel industries, the government said on Wednesday.
Palm closes higher despite weak soyoil, sluggish export demand
Cargo surveyors are scheduled to release Jan. 1-10 export data, and the Malaysia Palm Oil Board will release its December supply-demand data, both on Friday.
Dalian’s most-active soyoil contract fell 1.16%, while its palm oil contract lost 3.09%. Soyoil prices on the Chicago Board of Trade were down 0.77%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices were little changed, with investors weighing firm winter fuel demand expectations against large builds of fuel inventories in the U.S., the world’s biggest oil user, and macroeconomic concerns.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, remained unchanged against the U.S dollar.
Source: Brecorder
