Malaysian palm oil sees worst week in 9 months as India seeks to curb imports

Published 2024년 2월 3일

Tridge summary

Malaysian palm oil futures have experienced their worst week in nine months, marking a fourth consecutive session of decline. The slump is attributed to India's efforts to cut down on vegetable oil imports, a sustained decrease in other edible oils, and a strengthening of the ringgit. The benchmark palm oil contract for April delivery dropped 0.95% to 3,762 ringgit ($797.88) per metric ton, its lowest since January 11. The contract has seen a 6.35% week-on-week fall, the steepest since May 2, 2023.

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Original content

Malaysian palm oil futures extended losses to a fourth session on Friday, marking their worst week in nine months, after top buyer India sought to cut vegetable oil imports, while prolonged weakness in rival edible oils and a stronger ringgit also weighed. The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange fell 36 ringgit, or 0.95%, to 3,762 ringgit ($797.88) a metric ton at closing, the lowest close since Jan. 11. The contract has dived 6.35% week-on-week, marking its sharpest weekly decline since May 2, 2023. The overarching issue is that the edible oils market is entering a period of low demand, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co. India would step up efforts to boost local oilseed production, the finance minister said on Wednesday, as part of plans to cut pricey imports of vegetable oils. Dalian’s most-active soyoil contract DBYcv1 fell 0.94%, while its palm oil contract ...

Source: Hellenic Shipping News