Palm hits one-month closing low on weaker rivals, lacklustre demand
03/08/2023 (Business Recorder), Kuala Lumpur - Malaysian palm oil futures extended early losses on Thursday, hitting its lowest closing since the end of June as it tracked losses in rival edible oils and concerns over sluggish demand.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange fell 91 ringgit, or 2.32%, to 3,824 ringgit ($839.52) per metric ton.
Palm fell in seven of the past eight sessions to its lowest closing since June 30.
Palm oil will have to maintain its discount to attract fresh buying, especially at a time when key destinations India and China have sizeable vegetable oil inventories, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
India’s edible oil imports in July rose to a record 1.76 million metric tonnes as refiners built up stocks for upcoming festivals given uncertainty over supplies from the Black Sea, five dealers told Reuters.
Russia attacked Ukraine’s main inland port across the Danube River from Romania on Wednesday, sending global food prices higher as it ramped up its use of force to prevent Ukraine from exporting grain.
Dalian’s most-active soyoil contract eased 1.5%, while its palm oil contract fell 2.1%. Soyoil prices on the Chicago Board of Trade were down 0.8%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.