Malaysian palm oil rebounds
Malaysian palm oil futures rose 0.7% to 4,144 ringgit per ton, rebounding after last week’s sharp decline driven by higher production and profit-taking. Inventories are expected to reach a two-year high of 2.44 million tons in October as output climbs to its strongest level in seven years. However, weaker demand remains a concern, with India’s palm oil imports hitting a five-month low as buyers shift to cheaper soyoil. Palm oil prices also tracked mixed movements in rival vegetable oil markets in China and the US.
JAKARTA: Malaysian palm oil futures rose on Tuesday, recovering from a near four-month low hit in the previous session, after a sharp fall last week.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 29 ringgit, or 0.7 percent, to 4,144 ringgit (USD981.06) a metric ton at the close.
Palm oil futures are finding a reprieve after continuing production in Malaysia and profit-taking by traders fueled a sharp drop last week, said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading firm.
Malaysia’s palm oil inventories are forecast to climb to a two-year high in October, driven by a surge in production to the highest level in seven years, outpacing export demand. Palm oil stocks are expected to surge 3.5 percent in October to 2.44 million metric tons, their highest since October 2023.
Dalian’s most-active soyoil contract traded flat, while its palm oil contract shed 0.85percent. Soyoil prices on the Chicago Board of Trade (CBOT) lost 0.38percent. Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
India’s palm oil imports in October fell to a five-month low, dragging total purchases in the 2024/25 marketing year to their lowest in five years, as buyers switched to soyoil after a rally in palm oil prices, according to five dealers.
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Source : Business Recorder
