Palm extends losses on rising stocks, soyoil weakness

Malaysian palm oil futures extended losses on Wednesday as inventories rose to a four-month high in June and due to weakness in soyoil, even though an increase in July exports limited the downside. The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange was down 41 ringgit, or 1.04%, to 3,918 ringgit ($833.97) a metric ton, after losing 2% on Tuesday. “Palm oil stocks have been rising at a time when prices of other edible oils are dropping,” a Mumbai-based trader said. “This increases difficulties for producers as they cannot reduce stocks without offering discounts to compete with soyoil and sunflower oil.” Malaysia’s palm oil stocks at the end of June rose 4.35% to 1.83 million metric tons from the previous month, according to data released by the industry regulator. Crude palm oil production in June declined 5.23% from May to 1.62 million tons, while palm oil exports plunged 12.82% to 1.21 million tons, the Malaysian Palm Oil ...