Export data for Malaysia 2025 shows palm oil prices falling on the back of profit-taking.
Profit-taking led to a reversal of gains in the Malaysian palm oil futures on Friday, although traders are expecting the market to be supported by the announcement of the Malaysian budget for 2025 and the export data.
The benchmark contract for palm oil delivery in January on the Bursa Derivatives exchange fell 7 ringgit or 0.16% to 4,271 Ringgit ($992.33) per metric ton at the midday break.
The contract is down 1.82% this week after four weeks of gains.
The palm market initially gained support from China's third quarter economic data and the firmer overnight Chicago Soyoil Trading, according to Paramalingam Supramaniam of Selangor brokerage Pelindung Bestari. However, profit-taking dampened gains later, according to Paramalingam Supramaniam.
The government will present its budget for 2025, and traders expect more goodies to be given to the palm oil industry. "Lower production combined with exports that are better than expected will likely continue to support the palm oil sector," he said.
Intertek Testing Services, and AmSpec Agri Malaysia will release their export data for Oct. 1-20 on Sunday and Monday respectively.
Dalian's palm oil contract, which is the most active contract, fell by 0.49%. Chicago Board of Trade soyoil prices were up by 0.35%.
As rival edible oils compete to gain a share of global vegetable oil market, palm oil monitors the price movement of their competitors.
Crude oil futures edged higher on Friday on the back of a drop in U.S. crude oil inventories, and simmering Middle East conflict. However, prices were heading for their largest weekly loss in over a month due to concerns about lower demand.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency strengthened by 0.07% to the dollar. This made the commodity more costly for buyers who hold foreign currencies.
Technical analyst Wang Tao stated that palm oil prices are likely to drop to between 4,153 and 4,206 ringgit for a metric ton as they have broken the rising trendline.
(source: Reuters)
