Palm oil extends falls on higher output estimates, weaker rivals
Malaysian palm oil futures fell for a third session on Thursday, dropping 0.25% to 3,915 ringgit ($838.78) per metric ton. The decline was influenced by weaker competing edible oils and forecasts of increased production, with output from July 1-20 up nearly 15% from the previous month. Despite Indonesia’s plan to raise biodiesel content to 40%, palm oil prices were pressured by a stronger supply outlook and weaker demand for related oils.
BEIJING: Malaysian palm oil futures fell for a third session on Thursday, weighed down by weaker competing edible oils and forecasts of higher output as traders shrugged off Indonesia’s plan to raise its biodiesel content.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 10 ringgit, or 0.25%, to 3,915 ringgit ($838.78) a metric ton by the midday break.
The Malaysian Palm Oil Association has estimated production during July 1-20 rose nearly 15% from a month ago, traders and analysts said.
Indonesia, the world’s biggest palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.
Dalian’s most-active soyoil contract fell 1%, while its palm oil contract lost 1.6%. Soyoil prices on the Chicago Board of Trade were down 0.6%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices eased as concerns over weak demand in China, the world’s largest crude importer, and expectations of a nearing ceasefire deal in the Middle East overcame gains in the previous session after draws in U.S. inventories.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Palm oil may fall to 3,881 ringgit per metric ton, driven by a wave C, Reuters technical analyst Wang Tao said.
Source Link : https://www.brecorder.com/news/40314304/palm-oil-extends-falls-on-higher-output-estimates-weaker-rivals
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