Malaysia: Palm oil posts 2% weekly fall on consolidation after recent uptick

RBD Palm Oil

Malaysia

Market & Price Trends

Published Mar 23, 2024

Tridge summary

Malaysian palm oil futures experienced a drop on Friday, marking its first weekly loss in five weeks. This was due to a decrease in edible and crude oil prices. The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 1.46% to 4,187 ringgit ($884.27) a metric ton, the lowest since March 13. The market is currently consolidating after a general increase in prices since early March, due to supply constraints in Malaysia and Indonesia. However, prices are expected to remain supported due to anticipated higher Indonesian tax and levy in April.

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 Friday to markits firstweekly loss in five as it consolidatedafter a recent bullish episode, while lower edible and crude oil prices added to the decline. The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange ticked down 62ringgit, or 1.46% to 4,187 ringgit ($884.27) a metric ton at closing, the lowest close since March 13. The contract lost 2.33% this week, itsfirst weekly decline since Feb. 23. The market is in a “consolidation mode” after a general uptick in prices since early March, which was”basically premised on supply constraints both in Malaysia and Indonesia”, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. While a gradual increase in palm production is anticipated moving forward, expectations of higher Indonesian tax and levy in April will likely keep prices supportive, Supramaniam added. Dalian’s most-active soyoil contract DBYcv1 decreased 1.06%, ...

Source: Hellenic Shipping News