Palms slide on profit-taking after MPOB data that is bearish
Malaysian palm futures reversed gains made earlier in the week on Thursday, as profit-taking affected the market after the Malaysia Palm Oil Board (MPOB), released its demand and supply statistics.
The benchmark palm-oil contract for December delivery at Bursa Malaysia's Derivatives exchange fell by 17 ringgit or 0.4% to 4,235 Ringgit ($987.64).
The contract has dropped 2.49% in three sessions.
Malaysian palm futures fell on profit-taking after the release of MPOB data. The market interpreted the data as mildly negative, according to Paramalingam Supramaniam. Director at Selangor brokerage Pelindung Bestari.
He said that the factors affecting palm prices in the future will be Malaysia’s October production, direction of competing oils and weather uncertainty in South America.
During the lunch break, the company released its September supply-demand data. The data showed that Malaysian palm oil stocks ended September at a level of 6.93% higher than the previous month. Crude palm oil production fell 3.80% and palm oil exports increased 0.93%.
Dalian's palm oil contract, which is the most active contract, fell by 0.23%. Chicago Board of Trade soyoil prices were up by 0.09%.
As rival edible oils compete to gain a share of global vegetable oil market, palm oil monitors price changes in their competitors.
The palm ringgit's trade currency, the dollar, has weakened by 0.19%, making the commodity more affordable for buyers who hold foreign currencies.
The oil prices rose, boosted by an increase in fuel demand, as a hurricane barreled into Florida. Middle East supply risk was also in the spotlight.
Brent crude futures were trading at $77.77 per barrel, up 1.5% as of 1045 GMT. Palm oil is more appealing as a biodiesel source because crude oil futures are stronger. ($1 = 4.2880 ringgit)
(source: Reuters)
