Palm falls over 1% on weaker rival oils, higher stocks
KUALA LUMPUR: Malaysian palm oil futures fell more than 1% on Thursday, extending losses to a fourth straight session, as weaker rival edible oils and worries over rising October inventories pressured the market. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid 76 ringgit, or 1.62%, to 4,609 ringgit ($1,131.32) a metric ton by the midday break.…
Malaysian palm oil futures experienced a decline of over 1% on Thursday, continuing a streak of four consecutive days of losses, according to the Bursa Malaysia Derivatives Exchange. The benchmark palm oil contract for January delivery saw a drop of 76 ringgit, or 1.62%, reaching 4,609 ringgit ($1,131.32) per metric ton by midday.
This decline was attributed to weaker performances of competing edible oils and concerns over rising October inventories. The absence of any news regarding the removal of Malaysia's crude palm oil export tax also contributed to the market's caution. Other related markets, such as Dalian's most-active soyoil contract and palm oil contract in Chicago Board of Trade, also experienced declines.
Palm oil prices are closely tied to the price movements of rival edible oils, as it competes for a share in the global vegetable oils market. The recent drop in palm oil prices follows an earlier gain, as hopes for peace talks diminished the impact of renewed concerns over potential Middle East supply disruptions. Additionally, the weakening of the ringgit, the currency used in palm oil trading, made the commodity more expensive for foreign buyers.
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