Malaysian palm oil futures fell for the sixth consecutive day on Monday as market participants anticipated data from the Malaysian Palm Oil Board (MPOB) to reveal an increase in inventories in the world’s second-biggest producer of the oil.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange lost 8 ringgit, or 0.21%, to 3,822 ringgit ($817.54) per metric ton by the midday break.Malaysia’s palm oil stocks at the end of August rose 22.5%from the previous month to 2.12 million tons, MPOB data showed.
“The Bursa Malaysia Derivatives Crude Palm Oil continues its weak trend due to much higher MPOB end stocks in August and optimism of continued better production in September,” said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading company.
Crude palm oil production gained 8.9% from July to 1.75 million tons in August, while palm oil exports fell to 1.22 million tons, the MPOB said.The contract declined 5.20% last week.
Dalian’s most-active soyoil contract DBYcv1 rose 1.46%, while its palm oil contract DCPcv1 advanced 1.33%. Soyoil prices on the Chicago Board of Trade BOcv1 also rose 0.38%Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Sept 1-10 fell 11.2% to 350,823 metric tons from 395,145 metric tons shipped during the Aug 1-10 period, according to cargo surveyor Intertek Testing Services.
Meanwhile, India’s palm oil imports are set to jump 26% to a record high in the 2022-23 year ending on Oct. 31, as a recovery in consumption and competitive prices prompts refiners to increase purchases, the country’s top palm oil buyer said last week.
Palm oil FCPOc3 may bounce to 3,859-3,876 ringgit per metric ton, before turning around and retesting a support of 3,795 ringgit, Reuters technical analyst Wang Tao said.TECH/C ($1 = 4.6750 ringgit)