Palm falls for second session on stock fears, weak exports
KUALA LUMPUR: Malaysian palm oil futures reversed earlier gains to end lower for a second straight session on Thursday, as anticipated higher August inventories, sluggish export demand and soft Chicago soyoil weighed on the market. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 56 ringgit, or 1.13%, to 4,902 ringgit ($1,213.82) a metric ton at the close. The absence of fresh destination buying, coupled with weakness in Chicago soyoil as well as the expectations of a surge in Malaysian palm oil August end-stocks limited gains, said Anilkumar Bagani, commodity research head at brokerage Sunvin Group. Cargo surveyors estimated that exports of Malaysian palm oil products in August fell between 6.5% and 14.9% from a month earlier. Malaysia’s palm oil inventories are set to rise to a seven-month high in August, driven by the strongest production in nine months and a decline in exports, a Reuters survey showed. Dalian’s most-active soyoil contract fell 0.13%, while its palm oil contract shed 0.44%. Soyoil prices on the Chicago Board of Trade were down 1.89%. Palm oil tracks the price movements of rival edible oils, as it competes for
KUALA LUMPUR: Malaysian palm oil futures reversed earlier gains to end lower for a second straight session on Thursday, as anticipated higher August inventories, sluggish export demand and soft Chicago soyoil weighed on the market. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 56 ringgit, or 1.13%, to 4,902 ringgit ($1,213.82) a metric ton at the close. The absence of fresh destination buying, coupled with weakness in Chicago soyoil as well as the expectations of a surge in Malaysian palm oil August end-stocks limited gains, said Anilkumar Bagani, commodity research head at brokerage Sunvin Group. Cargo surveyors estimated that exports of Malaysian palm oil products in August fell between 6.5% and 14.9% from a month earlier. Malaysia’s palm oil inventories are set to rise to a seven-month high in August, driven by the strongest production in nine months and a decline in exports, a Reuters survey showed. Dalian’s most-active soyoil contract fell 0.13%, while its palm oil contract shed 0.44%. Soyoil prices on the Chicago Board of Trade were down 1.89%. Palm oil tracks the price movements of rival edible oils, as it competes for
