Palm oil futures fall on production increase outlook, lacklustre demand
Malaysian palm oil futures fell for a seventh straight session on Wednesday, dropping 1% to RM3,754/ton, pressured by rising production and weak global demand. Analysts expect short-term recovery before another potential decline in Q3. Meanwhile, soyoil prices rose in Chicago (+1.65%) and Dalian (+0.44%), although Dalian palm oil slipped 0.95%.
JAKARTA: Malaysian palm oil futures extended losses on Wednesday, continuing their decline for the seventh straight session, on worries about an increase in palm production and lacklustre demand from major consumer countries.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange lost RM38, or 1 per cent, to RM3,754 (US$886.63) a metric ton by the midday break. “With increasing palm production, the US government policies for biofuels and lacklustre demand from major consuming countries, palm prices have taken a fast dip,” said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading company.
These are now good levels for consumers to come in, and prices are expected to recover from these levels before they fall again in the third quarter, he added.
Dalian’s most-active soyoil contract rose 0.44 per cent, while its palm oil contract shed 0.95 per cent. Soyoil prices on the Chicago Board of Trade were up 1.65 per cent.
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Source : NST Online
