News

Palm falls on soyoil weakness, demand concerns in Malaysia

RBD Palm Oil
Malaysia
Market & Price Trends
Published Apr 13, 2024

Tridge summary

Malaysian palm oil futures saw a significant decline of over 1% on Friday, primarily due to a drop in Chicago soyoil prices, which was influenced by ample supplies and demand concerns, especially given its premium over other oils. The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell by 1.46% to 4,255 ringgit per metric ton, marking a 2% loss for the week. This downturn comes after the contract had reached a yearly high the previous week. The decrease in palm oil prices is linked to a recent fall in soybean oil prices and shifting demand as buyers, including India, look towards alternative oils due to the higher prices of palm oil. Despite a reduction in palm oil inventories attributed to lower output and increased exports, there are concerns that a potential rise in production and changing buyer preferences could impact this trend.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Malaysian palm oil futures fell more than 1% on Friday, tracking weakness in Chicago soyoil prices due to ample supplies, and amid concerns over demand because of its premium over rival oils. The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange fell 63 ringgit, or 1.46%, to 4,255 ringgit ($892.97) a metric ton by the midday break. The contract has lost 2% this week, after hitting a year high of 4,443 ringgit last week. “Palm oil prices are catching up with the recent fall in soybean oil prices. After a two-day market closure, palm oil is now adjusting to the price decline of rival vegetable oils,” said a New Delhi-based dealer with a global trade house. Soyoil prices on the Chicago Board of Trade BOc2 fell 0.4% on Friday after losing 3.2% on Thursday. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Palm oil stocks have been falling in recent months due to lower ...
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