Malaysia: Palm oil sinks from six-week high on concerns about China demand

Published 2022년 8월 15일

Tridge summary

Palm oil prices have dropped from a six-week high due to a decline in soybeans and concerns over demand in China. The US Department of Agriculture forecasted record domestic soy output, leading to a decrease in soybeans and soybean oil. There is renewed concern over Chinese demand due to Covid-19 lockdowns, as seen in Hainan Island. Malaysian palm oil exports, a gauge of overseas demand, are showing signs of weakening. The expected increase in production and stockpiles in top growers Indonesia and Malaysia is likely to weigh on prices.

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

Original content

JAKARTA (Aug 15): Palm oil tumbled from a six-week high following a decline in soybeans and on prospects of weakening demand in China. Futures for October delivery fell 6.7% to close at RM4,113 a ton after ending last week at the highest level since July 1. Soybeans and soybean oil declined too, after the US Department of Agriculture forecast record domestic soy output. Palm oil prices are pressured by profit-taking after strong gains last week, said Sathia Varqa, owner of Palm Oil Analytics in Singapore. There is also renewed concern over Chinese demand due to Covid-19 lockdowns, he added. China's commitment to Covid-zero means the threat of repeated restrictions and reopenings continues to loom. August saw a surge in cases on the resort island of Hainan, where authorities have locked down holidaymakers, suspended flights, and shut businesses to contain infections. Malaysian palm oil exports, a gauge of overseas demand, are showing signs of weakening. Shipments climbed 2.8% in ...

Source: Theedgemarkets