Palm ends lower on weaker rival oils
Malaysian palm oil futures declined on Tuesday, with the May contract falling 34 ringgit to 4,508 ringgit per metric ton. The drop followed weaker rival edible oils, including declines in Dalian and Chicago soyoil markets. A weaker ringgit helped limit losses, while traders awaited bullish signals. Indonesia targets replanting 120,000 hectares of palm plantations this year.
KUALA LUMPUR: Malaysian palm oil futures fell on Tuesday, tracking weaker rival edible oils, with traders awaiting bullish cues to prop up prices.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange slid 34 ringgit, or 0.75%, to close at 4,508 ringgit ($1,014.63) a metric ton.
The market was pressured by weakness in rival oilseeds due to a lack of significantly bullish news, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract fell 0.25% while its palm oil contract shed 0.33%. Soyoil prices on the Chicago Board of Trade were down 0.5%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
The ringgit, palm’s currency of trade, weakened 0.25% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Meanwhile, Indonesia has set a target to replant 120,000 hectares of smallholders’ palm oil plantations this year, the chief executive of the state plantation fund said.
Brazil’s soybean harvest for the 2024/25 season reached 23% of the planted area, as of last Thursday, up 8 percentage points from the previous week, while 32% of the total area had been reaped, agribusiness consultancy AgRural said.
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Source : Business Recorder
