Palm oil slips as weaker rival oils outweigh strong export outlook

On Thursday, Malaysian palm oil futures slipped, marking the end of a three-day winning streak, as weaker rival vegetable oils on Dalian and Chicago markets put pressure on prices, despite optimistic export forecasts for the first half of October. The December palm oil benchmark on the Bursa Malaysia Derivatives Exchange fell 1.66%, closing at 4,622 ringgit ($1,132.84) per metric ton.

Dalian's most-active soyoil contract declined 1.98%, while its palm oil contract dropped 3.03%. Chicago Board of Trade soyoil prices also retreated 0.92%. Palm oil moves in tandem with other edible oils as it vies for a share of the global vegetable oils market. Cargo surveyors reported a surge in Malaysian palm oil exports from October 1-15, ranging between 58.3% and 43.2% compared to the previous month.

India's palm oil imports in September increased by 4.5% from August to 817,884 metric tons, according to the Solvent Extractors’ Association of India. Malaysia reduced its November crude palm oil reference price, maintaining the export duty at 10%, as announced on Wednesday. The Malaysian Palm Oil Board website reported the price change.

Falling crude oil prices by about 2% on Thursday, as potential US measures to ease restrictions on Russia’s "shadow fleet" tankers alleviated price worries, but conflicts in the Middle East and Ukraine's strikes on Russian energy infrastructure dampened the decline. Lower crude oil futures made palm a less appealing choice for biodiesel feedstock.

The ringgit, palm's currency of trade, strengthened 0.02% against the dollar, making the commodity marginally pricier for buyers using foreign currencies.