Palm oil ends lower with export data in focus
16/05/2024 (Reuters), Jakarta - Malaysian palm oil futures shed earlier gains and closed lower onThursday, as traders braced for Malaysia's export data due later this week.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange dropped 51 ringgit, or 1.32%,at 3,804 ringgit ($812.65) a metric ton on the closing.
"The futures is trading on the back of moderate rival oils performance while cautious about impending increase in production and lower export in the coming days," a Kuala Lumpur-based trader said.
Dalian's most-active soyoil contract DBYcv1 rose 1.06%,while its palm oil contract DCPcv1 gained 0.24%.Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.02%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia has maintained its June export tax for crude palm oil at 8% and lowered its reference price to 3,956.06 ringgit ($845.13) per metric ton for June, compared with May's which was at 4,273.93 ringgit a ton, a circular on the Malaysian Palm Oil Board website showed on Thursday.
Exports of Malaysian palm oil products for May 1-15 fell 17.6% to 574,760 metric tons from 697,449 tons shipped during April 1-15, independent inspection company AmSpec Agri Malaysia said on Wednesday.
According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for May 1-15 fell 5.2% to 600,777 metric tons from 633,680 metric tons shipped during the same period in April.
Cargo surveyor Societe Generale de Surveillance (SGS) estimates exports of Malaysian palm oil products for May 1-15 at 426,947 metric tons, according to LSEG.
The U.S. soybean crush plunged in April to a seven-month low, missing all trade estimates, while soyoil stocks unexpectedly declined for the first time in six months, according to National Oilseed Processors Association (NOPA) data released on Wednesday.
Oil prices extended gains from the previous session on Thursday on signs of stronger demand in the U.S. where data showed slower inflation than markets expected, bolstering the argument for an interest rate cut which could drive even greater consumption. O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
($1 = 4.6810 ringgit)