22/06/2023 (Nasdaq), Jakarta - Malaysian palm oil futures continued to fall for the third day on Thursday after a drop in soybean oil selling momentum, as well as a lower-than-expected U.S. biofuel mandate.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange dropped 0.22% to 3,606 ringgit ($775.82) per metric ton in midday break, extending a 3.25% loss over the previous two sessions.

"Overnight Chicago Board of Trade soybean oil dropped and settled limit down, causing Bursa Malaysia Derivative's FCPO prices to open gap lower," a Kuala Lumpur-based trader told Reuters, adding that however, prices rose slightly with buying interest picking up later in the morning.

Soyoil prices on the BOc2traded 1.06% lower. The Dalian Commodity was closed for Dragon Boat Festival holidays, thus overall market trading activity is low.

Malaysia has maintained its July export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Wednesday.

Malaysian palm oil products exports for June 1-20 fell 16.8% from the same period in May, cargo surveyor Intertek Testing Services said. Cargo surveyor AmSpec Agri Malaysia said exports fell 12.9%.

Oil prices held on to most of the previous day's gains in early trade on Thursday as markets weighed an unexpected draw in U.S. crude oil stocks against the prospect of weaker demand after the Fed chairman hinted at further interest rate hikes.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

($1 = 4.6480 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-extends-losses-after-soybean-selling-momentum-eases-off