Malaysian palm extends losses to fourth day amid bearish outlooks

RBD Palm Oil

Malaysia

Published Sep 27, 2022

Tridge summary

Malaysian palm oil futures extended losses to a fourth session on Tuesday (Sept 27), following a warning by a leading industry analyst that prices would plunge by more than 30% by the end of this year amid soft demand and ample supply. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 2.29% to RM3,460 a tonne in early trade. It declined 8.9% in the previous three sessions.

Original content

JAKARTA (Sept 27): Malaysian palm oil prices will plunge to RM2,500 by the end of December, weighed down by improving production, demand destruction and a slowdown in major economies, leading analyst Dorab Mistry said on Friday. Dalian's most-active soyoil contract fell 1.44%, while its palm oil contract dropped 3.71%. Soyoil prices on the Chicago Board of Trade were trading 0.14% higher. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Exports of Malaysian palm oil products for Sept 1-25 rose 20.9% from the same period in August, cargo surveyor Intertek Testing Services said on Sunday, while independent inspection company AmSpec Agri said exports increased 18.6%. Palm oil may retest a support at RM3,427 per tonne, as it has pierced below the Sept 8 low of RM3,481, Reuters technical analyst Wang Tao. In the fourth quarter, palm oil may drop towards RM2,723 per tonne. Oil steadied in early Asian trade ...

Source: Theedgemarkets