Palm falls to new low on weaker rival oils, negative export data
31/05/2023 (Business Recorder), Jakarta - Malaysian palm oil futures plunged for a third session on Wednesday and hit a new low due to weaker rival oils and negative export data in May.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell 5.82% to 3,205 ringgit ($722.66) per tonne at closing.
The contract booked a third monthly drop on Wednesday to close down 3.98% from 3,338 ringgit per tonne at the end of April.
Today’s closing was also the lowest since November 2020.
“FCPO prices extended losses and marked a new low for the year as seeing continuous weakness in rival oilseeds. Negative export data of May 1-31 coupled with further drop in soybean oil at noon invited fresh selling in the second session,” a Kuala Lumpur-based trader told Reuters.
Malaysia’s exports during May fell 0.8% from April, cargo surveyor Intertek Testing Services said on Wednesday. Another cargo surveyor, AmSpec Agri Malaysia, said exports fall 1.8%.
Indonesia has set its crude palm oil (CPO) reference price at $811.68 per tonne for the period of June 1-15. The new reference price would place CPO export tax at $33 per tonne and levy at $85, lower from the previous period.
Dalian’s most-active soyoil contract fell 3.88%, while its palm oil contract was down 4.87%. Soyoil prices on the Chicago Board of Trade dropped 2.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.