MARKET DEVELOPMENT
Palm oil clocks near 3% weekly loss as crude, Dalian prices weaken
Palm oil clocks near 3% weekly loss as crude, Dalian prices weaken
29.11.2021 (www.hellenicshippingnews.com) - Malaysian palm oil futures fell over 1% lower on Friday and logged a weekly slump, dragged by weak crude and rival Dalian prices.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange closed down 76 ringgit, or 1.54%, to 4,851 ringgit ($1,144.91) a tonne.
The contract has fallen 2.74% this week after two straight weekly gains, also hurt by a forecast for stronger production of top vegetable oils next year.
“Prices are juxtaposed between bearish technicals and friendly fundamentals,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Exports of Malaysian palm oil products for Nov. 1-25 rose between 4.5% and 10.9% from the same period in October, according to cargo surveyor data released on Thursday.
The pace of growth, however, slowed from a monthly rise of between 9% and 18% seen during Nov. 1-20.
Exports in December are expected to be upbeat, although a lack of selling in the physical market indicates weak production, Paramalingam said.
Oil prices recorded their steepest daily fall since July as a new COVID-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter, making palm a less attractive option for biodiesel feedstock. O/R
Dalian’s most-active soyoil contract DBYcv1 fell 0.8%, while its palm oil contract DCPcv1 slipped 2%. The Chicago Board of Trade BOcv1 was closed for a public holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Source: Reuters (Reporting by Mei Mei Chu; Editing by Rashmi Aich, Subhranshu Sahu and Shailesh Kuber)
https://www.hellenicshippingnews.com/palm-oil-clocks-near-3-weekly-loss-as-crude-dalian-prices-weaken-2/
Source: Reuters (Reporting by Mei Mei Chu; Editing by Rashmi Aich, Subhranshu Sahu and Shailesh Kuber)