22/05/2024 (UkrAgroConsult) - Malaysian palm oil futures declined on Tuesday, weighed down by a drop in exports of oil products in May. The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange closed down 58 ringgit or 1.48%, at 3,863 ringgit ($822.26) a metric ton.

Weaker exports of palm oil in May dragged down prices, and expectations of a sharp rise in production also weighed on prices, said Anilkumar Bagani, research head at Sunvin Group, a Mumbai-based vegetable oil brokerage.

According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for May 1-15 fell 5.2% from the same period in April to 600,777 metric tons.

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 data.

Malaysia has maintained its June export tax for crude palm oil at 8% and lowered its reference price to 3,956.06 ringgit per ton for June, compared with May’s 4,273.93 ringgit, a circular on the Malaysian Palm Oil Board’s website showed.

Soyoil prices on the Chicago Board of Trade BOc2 fell 1.3%. Soybean harvesting in flood-hit Rio Grande do Sul state reached 85% of the area, up from 78% last week, according to crop agency Emater.

Oil prices dropped by more than $1 on Tuesday, extending losses on investor expectations that lingering U.S. inflation could keep interest rates higher for longer, depressing consumer and industrial demand. O/R

Weaker crude oil futures typically make palm a less attractive option for biodiesel feedstock. Palm oil may rise into a range of 4,002-4,025 ringgit per metric ton.

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