Palm oil closes down on bearish polls on inventories
07.09.2023 (Business Recorder) - JAKARTA: Malaysian palm oil futures closed lower for a third consecutive session on Wednesday after expectations of bearish inventory data pulled down prices while weaker rival oils weighed.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 19 ringgit, or 0.49%, at 3,882 ringgit ($830.91) per metric ton.
Malaysia’s palm oil inventories at the end of August likely jumped to a six-month high at 1.89 million metric tons, as output rose and exports slowed, a Reuters survey showed on Tuesday.
The Malaysian Palm Oil Board (MPOB) is due to release its palm oil inventories data on Sept. 11.
“The Bursa Malaysia Derivatives FCPO (Crude Palm Oil Futures) is in red for the third consecutive day due to (likely) bearish MPOB polls data, which is expecting a jump in August-end stocks, prompting a selling interest in the market,” a Kuala Lumpur-based trader said.
Higher purchases by India, the world’s biggest importer of palm oil, could help to lower inventories in top-producing Indonesia and Malaysia and support the benchmark futures.
India’s palm oil imports are set to jump 26% to a record high for the year ending on Oct. 31, 2023, as a recovery in consumption and competitive prices prompt refiners to increase purchases, the country’s top palm oil buyer told Reuters on Wednesday.