Palm oil extends losses to fourth day on dull export estimates
Malaysian palm oil futures hit a six-week low, declining for the fourth consecutive day as forecasts predicted a drop in June exports. The benchmark palm oil contract for September on the Bursa Malaysia Derivatives Exchange decreased by 14 ringgit (0.3%) to 3,845 ringgit per metric ton. Export estimates for June 1-25 indicated a decline of up to 16.9% from the previous month, influenced by weaker crude oil prices, making palm oil less attractive for biodiesel production.
BEIJING, June 26 (Reuters) -Malaysian palm oil futures dropped for a fourth consecutive day on Wednesday to their lowest levels in nearly six weeks after cargo surveyors forecast a decline in June exports so far.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 14 ringgit, or 0.3%, to 3,845 ringgit ($817.22) a metric ton during early trade, its lowest since May 17.
FUNDAMENTALS
* Exports of Malaysian palm oil products for June 1-25 likely fell 16.1% to 944,009 metric tons from 1,125,451 metric tons shipped during May 1-25, cargo surveyor Intertek Testing Services said on Tuesday.
* Exports of Malaysian palm oil products for June 1-25 fell 16.9% to 891,570 tons from 1,073,429 tons shipped during the same period last month, according to estimates from independent inspection company AmSpec Agri Malaysia.
* Cargo surveyor Societe Generale de Surveillance (SGS) estimates exports of Malaysian palm oil products for June 1-25 at 908,517 metric tons, from 949,451 metric tons shipped during a month-ago period, according to LSEG data.
* Oil prices fell in early Asian trade on Wednesday after an industry group reported a surprise jump in U.S. stockpiles, fuelling concerns about weaker-than-expected demand in the top oil-consuming nation. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* Dalian’s most-active soyoil contract DBYcv1 fell 0.6%, while its palm oil contract DCPcv1 eased 0.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.2%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may revisit its May 10 low of 3,767 ringgit per metric ton, as suggested by a retracement analysis, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Global stock indexes mostly climbed on Tuesday, with shares of AI chipmaker Nvidia bouncing after a three-day sell-off, while the dollar gained slightly against the Japanese yen. MKTS/GLOB
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