Palm oil ends lower as investors book profits
JAKARTA: Malaysian palm oil futures extended losses and ended lower on Monday as investors booked profits, while losses in the Dalian market added to the decline.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 44 ringgit, or 1.11 per cent, at 3,933 ringgit ($903.10) a tonne. “The benchmark is having a correction from profit taking after the recent rally and tracking a decline in Dalian palm oil,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract fell 1.24pc, while its palm oil contract dropped 1.76pc. The Chicago Board of Trade is closed for a holiday.
Palm oil tracks price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia’s August palm oil exports are seen at 1,376,412 tonnes, according to Amspec Agri.
Exports of Malaysian palm oil products for August fell 9.9pc to 1,445,442 tonnes from July, cargo surveyor Intertek Testing Services said the other day.
Indonesia raised its crude palm oil reference price for September to $839.53 per tonne from $820.11 in August, a trade ministry regulation showed on Friday.
Traders are also moving cautiously as key importer India is mulling an increase in import taxes on vegetable oils, which could hit demand for palm oil. The Malaysian ringgit, palm’s currency of trade, weakened 0.74pc against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders. Meanwhile, oil prices extended losses on Monday on expectations of higher OPEC+ production from October, while signs of sluggish demand in China and the US raised concerns about future consumption growth.
Published in Dawn, September 3rd, 2024