Malaysia: Palm oil dips on firmer ringgit but stronger rival oils cap losses

RBD Palm Oil

Malaysia

Market & Price Trends

Published Mar 8, 2024

Tridge summary

Malaysian palm oil futures experienced a drop on Thursday due to a stronger ringgit, despite the strength in other edible oils. The benchmark palm oil contract for May delivery fell by 10 ringgit, or 0.25%, closing at 4,071 ringgit ($865.80) per metric ton. This comes after a 2.38% rise the previous day, driven by tight supply and increased demand optimism. However, the stronger ringgit has made palm oil less appealing to foreign currency holders. It is anticipated that Malaysia’s palm oil stocks will fall below 2 million tons for the first time in six months at the end of February.

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 on Thursday after hitting its highest closing price in more than seven months in the previous session, weighed down by a firmer ringgit, although strength in rival edible oils capped losses. The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange was down 10 ringgit, or 0.25% at 4,071 ringgit ($865.80) per metric ton at closing, logging a two-day low. The contract rose 2.38% a day ago, its biggest daily gain in nearly four months, fuelled by tight supply and optimism over palm demand. “The recent firm footing of palm oil premiums in both Malaysia and Indonesia is reflective of a short-term supply contraction as we transition through the monsoon period,” said Marcello Cultrera, director at commodities consultancy Apricus 8 Pte Ltd. Minor restocking across various importers also contributed to the uptick in pricing dynamics, Cultrera added. Nonetheless, strength in the ringgit capped Malaysian palm oil ...

Source: Hellenic Shipping News