Palm oil snaps three days of gains on weak Chicago soyoil, export data
28/02/2024 (XM), Jakarta - Malaysian palm oil futures fell on Wednesday, snapping three sessions of gains, weighed down by softer Chicago soyoil prices and weak export data.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange closed 0.38% down at 3,907 ringgit ($819.59) per metric ton. It had traded between 20 ringgit above and 33 ringgit below its Tuesday close.
"CPO futures gave up earlier gains coming under pressure from weak February exports and poor export prospects with palm continuing to trade at a premium to bean oil," said Sathia Varqa, senior analyst with Fastmarkets Palm Oil Analytics.
Output in February is expected to show a small decline in production against a larger drop in export, Varqa added.
Exports of Malaysian palm oil products for the Feb. 1-25 period dropped between 6.3% and 14%, cargo surveyors data showed.
Soyoil prices on the Chicago Board of Trade BOc2 fell 0.86%. The soyoil contract on the Dalian Commodity Exchange DBYcv1 was up 0.50%, while its palm oil contract DCPcv1 rose 0.74%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Indonesia plans to lower its crude palm oil reference price for the March 1-31 period to $798.90 and keep the export tax and levy at $33 and $85 per ton, respectively. The regulation stating the new reference price is yet to be published.
Indonesia's palm oil output this year is expected to rise by 5% year-on-year to 57.6 million tons, while export is expectedto stagnate at 32 million to 33 million tons, the Indonesia Palm Oil Association said on Tuesday.