Palm oil exports slip on the back of profit-taking following weak export data
Malaysian palm futures declined on Thursday, wiping out gains made in the previous session due to profit taking after reports revealed weaker export figures for the period of July 1-15.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for October delivery had fallen 7 ringgit or 0.17% to 4,217 Ringgit ($993.87) per metric ton.
A Kuala Lumpur based trader stated that "the market is cashing out on the news about weaker exports despite Dalian palm oil being supportive and Chicago soyoil being supportive."
AmSpec Agri Malaysia reports that exports of Malaysian Palm Oil Products for the period July 1-15 fell by 5.3% compared to June 1-15. Intertek Testing Services, a cargo surveyor, reported a drop of 6.2%.
Malaysia also increased its crude palm oil export duty to 9%, up from 8.5%.
Chicago Board of Trade soyoil rose by 0.16%. Dalian's soyoil contract with the highest volume gained 0.3% while palm oil lost 0.83%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
Biodiesel consumption in Indonesia reached 7.42 millions kilolitres this year, up to July 16th, 47.5% the allocation for 2025.
The Indonesian plantation fund agency believes that levies on palm oil collected this year will reach 30 trillion rupiahs ($1.84 billion), enough to cover the country's mandate for biodiesel.
The palm ringgit's trade currency, the dollar, has weakened by 0.07%, making it slightly cheaper for foreign currency holders.
Technical analyst Wang Tao believes that palm oil could retest the resistance level of 4,231 ringgit for a metric ton with a high probability of rising above this and into the range 4,254-4292 ringgit, he said. ($1 = 4.2430 ringgit)
(source: Reuters)
