Palmetto ends the year lower due to profit-taking and weak export data
Malaysian palm futures ended lower on Thursday as profit-taking wiped out gains made in the previous session. This was due to reports showing weaker export figures for the period of July 1-15.
The benchmark contract for palm oil delivery in October on the Bursa Derivatives exchange lost 12 ringgit or 0.28% to $4,212 ringgit (US$991.76) 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%.
The Chicago Board of Trade soyoil price rose by 0.49%. Dalian's soyoil contract with the highest volume gained 0.5% while palm oil contracts increased by 0.87%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
As of July 16, Indonesia's biodiesel usage reached 7.42 millions kilolitres, or 47.5% of 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 dollar's value against the ringgit has dropped by 0.17%, making palm slightly cheaper for foreign currency holders. $1 = 4.2470 Ringgit (Reporting and editing by Sumana Nady and Rashmi Anich; Reporting by Dewi Kurianawati)
(source: Reuters)
