Malaysian palm oil lower on profit-taking
Malaysian palm oil futures fell 0.28% on Thursday, erasing prior gains as weak July export data spurred profit-taking despite stronger rival edible oil markets.
JAKARTA: Malaysian palm oil futures closed down on Thursday, erasing gains from the previous session, on profit-taking after reports showed weaker export data for the July 1-15 period.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange lost 12 ringgit, or 0.28%, to 4,212 ringgit ($991.76) a metric ton at the close.
“The market is cashing out on the news of weaker export despite a supportive Dalian palm oil and Chicago soyoil,” a Kuala Lumpur-based trader said.
According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for the July 1-15 period fell 5.3% from June 1-15, while cargo surveyor Intertek Testing Services reported a 6.2% drop.
Meanwhile, Malaysia has hiked its August crude palm oil reference price, raising export duties to 9% from 8.5% in July. Soyoil prices on the Chicago Board of Trade rose 0.49%. Dalian’s most-active soyoil contract added 0.5%, while its palm oil contract gained 0.87%. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Indonesia’s biodiesel consumption reached 7.42 million kilolitres this year, as of July 16, 47.5% of 2025’s allocation. Indonesia’s plantation fund agency estimates levies collected on palm oil will touch 30 trillion rupiah ($1.84 billion) this year, enough to finance the country’s biodiesel mandate.
The ringgit, palm’s currency of trade, eased 0.17% against the dollar, making the commodity marginally cheaper for holders of foreign currencies.
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Source : BUSINESS RECORDER
