Dalian palm and VEGOILS-Palm end lower in profit-booking
Malaysian palm futures continued to lose on Wednesday as traders booked profits after early gains that had been triggered by a fall in November stocks.
The benchmark palm-oil contract for February delivery at Bursa Malaysia's Derivatives exchange lost 96 Ringgit or 1.94% to $4,855 Ringgit ($1,095.94), a metric tonne, at the close.
Malaysian palm oil stocks fell for the second consecutive month, dropping 2.6% from November to 1,84 million tons. This was revealed by the Malaysian Palm Oil Board on Tuesday. The fall in palm oil inventories may fuel a rally for benchmark futures.
The board reported that palm oil exports fell 14.7% in November, to 1,49 million tonnes, while crude palm oil production dropped 9.8% to 1.62 millions tons. This is the lowest level for a month since 2020.
Dalian's palm-oil contract dropped 1.12% while the most active soyoil contract grew 1.72%. Chicago Board of Trade Soyoil rose 0.68%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
Intertek Testing Services, a cargo surveyor, said that the exports of palm oil products from Malaysia for the period Dec. 1-10 increased by 3.9%. AmSpec Agri Malaysia - an independent inspection company - reported a 1.1% increase.
Market participants expect demand to increase in China, which is the world's biggest crude importer. This comes after Beijing announced that it would ease monetary policy in an effort to stimulate economic growth.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
(source: Reuters)
