Palm oil beats out weaker oils at Dalian and Chicago exchanges
After four sessions of gains on the Chicago and Dalian commodities exchanges, the price of Malaysian palm oils futures fell on Thursday. Market participants were awaiting the export data.
By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for July delivery had fallen 48 ringgit or 1.22% to 3,875 Ringgit ($904.74) per metric ton.
A Kuala Lumpur based trader stated that "today, CPO Futures are taking a rest after the recent rally... and waiting for 15-day export data will provide new lead."
The contract dropped, following weaker Chicago soybean oil and Dalian vegetable oils. A stronger ringgit also added pressure, said the trader.
Surveyors have not yet released the export data from the period May 1-15.
Dalian's soyoil contract with the highest volume fell 0.63% while palm oil contracts for June delivery dropped 0.67%. Prices of soyoil on the Chicago Board of Trade dropped by 4.56%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the prices for rival edible oils.
Indonesia will increase its crude palm (CPO), export levy from 7.5% to 10% starting May 17 to fund the country's increased mandate for biodiesel blends.
A leading industry group said that India's imports of vegetable oil plunged in April to the lowest level in over four years. Palm oil imports were the main culprit, with inventories falling to their lowest levels in almost five years.
The Rosario grain exchange has raised its estimate of Argentina's soybean production for 2024-25 to 48.8 million metric tonnes from the earlier 45.5 million metric tons.
The Malaysian ringgit (the palm's trade currency) rose on Thursday for a second day, gaining 0.05% against U.S. dollars, increasing the cost of the contract for holders of foreign currencies.
Palm oil FCPOc3 could retest the support level of 3,921 Ringgit per metric tonne. A break below this mark would trigger a drop into the range 3,871-32,887 Ringgit. ($1 = 4.2830 ringgit)
(source: Reuters)
