VEGOILS-Palm posts third weekly loss on rival oils
Jakarta, Aug 11 (Reuters) – Malaysian palm oil futures fell for a third session on Friday, tracking weakness in rival vegetable oils on the Dalian Commodity Exchange, although rising exports offered some support.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange lost 14 ringgit, or 0.38%, to 3,714 ringgit ($810.92) per metric ton in early trade.
The price is down 3.76% for the week.
“FCPO tracking Dalian palm oils weakness with support from better export,” a Kuala Lumpur-based trader said.
Exports of Malaysian palm oil products could rise between 5.9% and 17.5% from Aug. 1-10, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia showed.
Palm oil is affected the by price movements in related oils as they compete for a share in the global vegetable oils market.
Dalian’s most-active soyoil contract DBYcv1 lost 0.59%, while its palm oil contract DCPcv1 fell 1.02%. Soyoil prices on the Chicago Board of Trade BOc2 were also down 0.19%.
India’s demand for palm oil is increasing as its discount to soyoil and sunflower oil rises.
This demand surge could assist Indonesia and Malaysia to bring down their palm oil inventories.
Malaysia’s end-July palm oil inventories rose to a five-month peak on higher production, data from the country’s palm oil board showed on Thursday, but missed expectations as exports grew faster.
($1 = 4.5800 ringgit)
(Reporting by Bernadette Christina Munthe and Dewi Kurniawati; Editing by Sonia Cheema and Dhanya Ann Thoppil)
Source Link: https://www.nasdaq.com/articles/vegoils-palm-posts-third-weekly-loss-on-rival-oils
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