Malaysian palm oil declines for third straight session on poor demand from key markets

Published 2024년 12월 18일

Tridge summary

Malaysian palm oil futures have experienced a decline for three consecutive sessions, with the benchmark contract dropping by 0.71% to 4,724 ringgit a metric ton. This drop is attributed to weak demand from key markets, such as India, due to negative import margins, and a surge in long liquidation by funds. Despite concerns over weaker production and potential low end stocks, the market sentiment remains negative due to factors such as a large U.S. crop and the year-end book closing. Additionally, the decline in palm oil prices is linked to a drop in soyoil prices and concerns about China's economic data and the upcoming U.S. Federal Reserve interest rate decision.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Malaysian palm oil futures tumbled for a third straight session on Tuesday, pressured by weak demand from key destination markets. The Bursa Malaysia Derivatives Exchange’s benchmark contract slid 34 ringgit, or 0.71%, to 4,724 ringgit ($1,058.01) a metric ton at the close. Futures were pressured by lower overnight Chicago soyoil futures and lack of fresh demand from destination markets amid deep negative import margins, especially in India, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin group. Paramalingam Supramaniam, director at Selangor-based brokerage firm Pelindung Bestari, said prices plunged following a massive long liquidation by funds, a trend that is believed will continue for an extended period. “Until we see a potential return of bona fide buying interest in the cash market, the bumper crop in the U.S added with book closing for the year end, the market will continue to remain under selling pressure. “Fundamentals such as weaker production and ...

Source: UkrAgroConsult