Palm exports fall by nearly 2% due to profit-taking
The price of palm oil in Malaysia fell by nearly 2% Tuesday, after two sessions of gains. Profit-taking and weaker data on exports weighed.
The benchmark palm-oil contract for September delivery at Bursa Malaysia's Derivatives exchange lost 82 Ringgit or 1.94% to $4148 ringgit ($978.53), a metric tonne, at the close.
A Kuala Lumpur-based broker said that the market was focused on profit-taking after Dalian palm oil became softer.
AmSpec Agri Malaysia is an independent inspection company that reports that exports of Malaysian Palm Oil Products for the period July 1-15 fell by 5.3% in comparison to the period June 1-15. Intertek Testing Services is a cargo surveyor and says it dropped 6.2%.
Dalian's palm oil contract rose 0.07%, but its most active soyoil contract increased 0.3%. Chicago Board of Trade soyoil prices were down by 0.46%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
Oil prices dropped on Tuesday as U.S. president Donald Trump's 50-day deadline to Russia for ending the Ukraine war in order to avoid sanctions reduced immediate supply concerns.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit's trade currency strengthened by 0.26% to the dollar. This made the commodity more costly for buyers who hold foreign currencies.
India's imports of palm oil reached an 11-month peak in June, as refiners increased purchases to take advantage of a discount on rival oils such as soyoil or sunflower oil and to replenish their depleted stocks.
(source: Reuters)
