VEGOILS-Palm oil tracks soyoil higher for third day, weak demand weigh
15/06/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures on Thursday tracked rival soyoil prices higher for a third consecutive session, although bigger stockpiles and weak demand capped the gains.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 25 ringgit, or 0.72%, to 3,477 ringgit ($750.65) a metric ton by the midday break.
Exports of Malaysian palm oil products for June 1-15 fell 16.6% to 464,380 metric ton from 557,090 metric ton shipped during May 1-15, cargo surveyor Intertek Testing Services said.
Palm fundamentals are weak and a stronger factor is needed for the price to move higher, a Kuala Lumpur-based trader said.
In top producer Indonesia, palm oil exports in April, including refined products, fell 1.93% annually to 2.13 million metric ton, data from the Indonesian Palm Oil Association showed on Thursday.
Indonesia plans to set its crude palm oil reference price at $723.45 per metric ton for the June 16-30 period, down from $811.68 currently, economics ministry official Musdhalifah Machmud said on Wednesday.
India on Wednesday slashed base import duty on refined soyoil and sunflower oil to 12.5% from an earlier 17.5%, the government said in a notification as the world's biggest vegetable oil buyer tries to dampen local prices.
Soyoil prices on the Chicago Board of Trade BOcv1 firmed after a 2.7% overnight rise as concerns over dry weather conditions in the Midwest curbed crop prospects.
Dalian's most-active soyoil contract DBYcv1 rose 0.3%, while its palm oil contract DCPcv1 gained 0.5%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
($1 = 4.6320 ringgit)
Source: Reuters