JAKARTA: Malaysian palm oil futures fell for the third consecutive session on Thursday, pressured by sluggish demand and weakness in Dalian vegetable oils.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down RM14, or 0.32 per cent, to RM4,399 (US$1,042.42) a metric ton, as of 0235 GMT.
Dalian’s most-active soyoil contract lost 0.53 per cent, while its palm oil contract was down 1.07 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) gained 0.2 per cent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Exports of Malaysian palm oil product in the September 1-10 period fell between 1.2 per cent and 8.4 per cent from the same period a month ago, cargo surveyor Intertek Testing Services and inspection firm AmSpec Agri Malaysia said on Wednesday.
Malaysia’s palm oil stocks surged to a 20-month high in end-August as production increased and exports slipped slightly, data from the Malaysian Palm Oil Board showed.
Chicago soybeans extended losses to a third straight session on Thursday, as traders squared positions ahead of a key US supply and demand report, and an absence of demand from China added pressure.
Oil prices were flat on Thursday, cooling from the previous session as weak demand in the United States and broad oversupply risks countered concern over attacks in the Middle East and Russia’s war in Ukraine.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may revisit its August 29 low of RM4,377 per metric ton, as the downtrend from RM4,614 may have resumed, Reuters technical analyst Wang Tao said.
Japanese and Taiwanese shares set records on Thursday as technology companies rallied while investors wagered that US inflation data will be well behaved enough to ensure an interest rate cut next week, and perhaps two more by year end.
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