Palm oil drops for the third consecutive day due to weaker competitors and selling pressure
Malaysian palm futures ended lower on Thursday for the third session in a row, due to weakness in the prices of vegetable oils listed in Dalian and pressure from sellers in crude palm (CPO).
The benchmark Bursa Derivatives Exchange palm oil contract closed down 23 ringgit or 0.46% at $4,964 Ringgit ($1,108.53).
Paramalingam Supramaniam is the director of brokerage Pelindung Bestari in Selangor. He said that the CPO market was suffering from the constant selling pressure. This has generated interest and kept offers high for the local olein.
Dalian's palm oil contract, which is the most active contract, fell by 0.44%. Chicago Board of Trade soyoil prices were up by 0.93%.
As palm oil competes to gain a share of the global vegetable oils industry, it tracks the price changes of competing edible oils.
The Solvent Extractors' Association of India reported that India's imports of palm oil in October increased 60% from September, to 845.682 tons, on the back of festive demand, and refiners' purchases to replenish stocks that were depleted recently by lower than usual imports.
Indonesia's Government reaffirmed its plan to implement the B40 program, which is a mandatory blend of palm oil and biodiesel, at 40%, by January 2025 as part of their "quick win" programs.
According to AmSpec Agri Malaysia (ITS) and AmSpec Agri Malaysia (AmSpec), exports of palm oil products from Malaysia in the period Nov. 1-10 are expected to fall between 14.6% and 15% compared with a similar period a month earlier.
Crude oil prices are rising.
The underlying trend is largely stable
On Thursday, traders held back after earlier declines this week due to a stronger U.S. Dollar and concerns about rising supply in the face of slow demand growth.
Palm oil is less appealing as a biodiesel source due to lower crude oil prices. $1 = 4.4780 Ringgit (Reporting and editing by Rashmi H K and Varun HK; Dewi Kurniawati and Bernadette Cristina)
(source: Reuters)
