VEGOILS-Palm logs first weekly drop in four as outlook, rival oils weigh
JAKARTA, Sept 8 (Reuters) – Malaysian palm oil futures posted a weekly drop on Friday, snapping three consecutive weeks of gains, hurt by weakness in rival vegetable oils and expectations of higher ending stock in August.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange lost 6 ringgit, or 0.16%, to end at 3,826 ringgit ($818.57) per metric ton, its lowest closing price in nearly four weeks.
The contract plunged for five straight sessions and lost 5.3% for the week.
“Market is under pressure on estimates of a steep rise in Malaysian palm oil August end inventories,” said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
The Malaysian Palm Oil Board (MPOB) is due to release its August supply-demand data on Sept. 11.
A supportive estimate of the September 1-5 Malaysian palm oil output and exports could not support the contract from the pressure of losses in rival oils, analysts said.
Argentina’s soybean crop for 2023/24 is estimated at 50 million metric tons, the highest in the last five years, as the El Nino weather phenomenon is expected to bring rain to the area.
Dalian’s most-active soyoil contract DBYcv1 dropped 1.34%, while its palm oil contract DCPcv1 fell 1.15%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.55%.
Palm oil may drop further to 3,730 ringgit per metric ton, driven by a wave C, said Reuters technical analyst Wang Tao. [TECH/C}
($1 = 4.6740 ringgit)
(Reporting by Bernadette Christina; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Sonia Cheema)
