Palm slips over 1% on weaker soyoil, bearish MPOB data

Malaysian palm oil futures declined more than 1% on Thursday, marking a third consecutive day of losses, as soyoil weakness and bearish supply data weighed on the market. The November delivery contract for palm oil on the Bursa Malaysia Derivatives Exchange fell 81 ringgit, or 1.63%, to 4,885 ringgit ($1,202.61) per metric ton. Proprietary trader David Ng attributed the market's decline to weaker soybean oil prices, noting that the Malaysian Palm Oil Board's data also appeared bearish.

Inventory levels had hit an eight-month high in August due to rising production and declining exports, leading to stockpiling, he said. August data revealed a 11.7% to 17.5% decline in exports compared to the previous month. Oil prices surged, breaching the $100 per barrel mark for Brent, as traders anticipated larger supply disruptions following Iran's and the United States' major maritime attacks.

Palm oil's price sensitivity to rival soyoil and stronger crude oil futures made it a more appealing biodiesel feedstock for traders. Soyoil prices on the Chicago Board of Trade fell 0.64%, and its palm oil contract slid 1.37%. The Malaysian ringgit strengthened 0.17% against the dollar, increasing the commodity's cost for foreign buyers.