Malaysian palm oil follows rival edible oils lower

Published 2024년 12월 19일

Tridge summary

Malaysian palm oil futures experienced a fourth consecutive session of decline, with the benchmark contract for March delivery dropping 2.9% to 4,588 ringgit a metric ton. This drop is attributed to a sell-off in soyoil futures and weaker momentum in Chinese vegetable oil futures. The performance of Malaysian palm oil exports in December is shaky due to reluctance in chasing palm oil at steep premiums in destination markets like India and China. Meanwhile, Malaysia maintains its January export tax for crude palm oil at 10% and raises its reference price to 5,001.72 ringgit per ton. The European Parliament approves a one-year delay of Europe's deforestation law, which will commence from December 2025.

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Original content

Malaysian palm oil futures dropped on Wednesday for a fourth consecutive session, weighed down by losses in rival edible oils. The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange slid 137 ringgit, or 2.9%, to 4,588 ringgit ($1,027.32) a metric ton by the midday break. The market was pressured by the sell-off in Chicago soyoil futures overnight and in Asian hours on Wednesday, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group. Weaker momentum in Chinese vegetable oil futures and declining energy prices also weighed on the market, he said. The performance of Malaysian palm oil exports in the first half of December is shaky as destination markets like India and China are not willing to chase palm oil at such a steep premium over soft oils in general and soy oil in particular, he said. Dalian’s most-active soyoil contract DBYcv1 fell 3.2%, while its palm oil contract DCPcv1 shed 1.8%. Soyoil prices on the ...

Source: UkrAgroConsult