VEGOILS-Palm oil flat as weak CBOT soyoil offsets Chinese demand boost
17/10/2023 (Nasdaq) Singapore - Malaysian palm oil futures were little changed on Tuesday after three consecutive sessions of gains, as strong exports and Chinese demand were offset by weaker Chicago soyoil prices.
Exports of Malaysian palm oil products for Oct. 1-Oct. 15 rose 5.6% from Sept. 1-Sept. 15, independent inspection company AmSpec Agri Malaysia said on Sunday.
Another cargo surveyor, Intertek Testing Services, said exports rose 7.3%.
Malaysia has maintained its November export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Tuesday.
Further supporting prices was Southern Peninsular Palm Oil Millers Association data, which showed production in the first half of October fell by 0.73% month-on-month, LSEG Agriculture Research said in a note late Monday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices steadied on Tuesday after sliding more than $1 on Monday amid hopes the U.S. would ease sanctions on producer Venezuela and as Washington stepped up efforts to prevent an escalation of the war between Israel and Hamas. O/R
Weaker crude makes palm a less attractive option for biodiesel feedstock.
($1 = 4.7340 ringgit)
Source: Reuters