Palm drops on demand concerns, falls 2.2% this week in Malaysia

Published 2024년 9월 14일

Tridge summary

Malaysian palm oil futures have experienced a second consecutive day of losses, reaching a three-week low due to a strong ringgit and weak demand. Despite concerns over sunflower oil supplies from the Black Sea region, the drop in demand and the ringgit's strength are preventing palm oil from recovering. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed 1% lower at 3,813 ringgit ($887.16) per metric ton. The potential increase in India's import duty and Indonesia's reduction in export taxes, along with a quarterly drop in India's August palm oil imports, are adding to the market's worries.

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

Original content

Malaysian palm oil futures extended losses to a second session on Friday, hitting a three-week low, on a strong ringgit and as sluggish demand outweighed concerns over sunflower oil supplies from the top-producing Black Sea region. The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange closed down 39 ringgit, or 1%, at 3,813 ringgit ($887.16) a metric ton. The contract lost 2.2 this week. Palm oil is struggling to recover despite overnight gains in soyoil and concerns over sunoil supplies, said a Mumbai-based trader. “Demand is not supporting a recovery in palm oil.” Ukraine accused Russia on Thursday of using strategic bombers to strike a civilian grain vessel in the Black Sea waters near NATO member Romania, raising concerns over sunoil’s supply. The Chicago Board of Trade soyoil BOc2 edged down 0.7%. Palm oil tracks price movements in related oils as they compete for a share in the global vegetable oils market. “The potential ...

Source: Hellenic Shipping News