News

Malaysian palm oil loses ground for fourth session, hits six-week low

RBD Palm Oil
Malaysia
Market & Price Trends
Published Apr 18, 2024

Tridge summary

Malaysian palm oil futures have experienced a decline for the fourth consecutive session, reaching a six-week low, primarily due to the competitive pricing of rival edible oils and negative impacts from the latest USDA World Agricultural Supply and Demand Estimates (WASDE) report. The benchmark palm oil contract for July delivery saw a significant drop of 78 ringgit, settling at 3,996 ringgit per metric ton on the Bursa Malaysia Derivatives Exchange. This downward trend was mirrored in related markets, including soyoil and palm oil contracts on the Dalian exchange and soyoil prices on the Chicago Board of Trade. The fall in palm oil prices is linked to the competitive pricing of other edible oils and a decrease in crude oil futures, which diminishes the appeal of palm oil for biodiesel production.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Malaysian palm oil futures dropped on Wednesday for a fourth straight session, slipping to their lowest in six weeks, as competitive pricing of rival edible oils weighed on demand. The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange slid 78 ringgit, or 1.91%, to 3,996 ringgit ($834.24) a metric ton by the midday break, hitting its lowest since March 6. “The latest USDA World Agricultural Supply and Demand Estimates (WASDE) report presented bearish figures, prompting funds to unwind positions and build short interests across the grains and oilseed sectors,” said Marcello Cultrera, director at Singapore-based commodities consultancy Apricus 8 Pte Ltd. This has impacted trading strategies and triggered a downward reversal on the Dalian and Malaysian bourses, he said. Dalian’s most-active soyoil contract DBYcv1 fell 1.68%, while its palm oil contract DCPcv1 eased 2.22%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.38%. ...
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