For the first time in four sessions, Malaysian palm oil futures dipped below MYR 3,840 per tonne. It closed lower at a six-week low of MYR 3,753 set on January 25 amid prospects for higher supply, weaker demand and continued ringgit growth.
To meet increased demand for cooking oil during the Islamic holidays, Indonesia’s commerce minister ordered producers to increase domestic production by 50% through April. He also kept the mandatory export to domestic consumption ratio at 1:6, raising expectations for supply and ending stocks.
Meanwhile, cargo inspectors reported that due to reduced demand from Europe, India and China, Malaysia’s exports fell 28% to 35% from January 1 to 25 compared to the previous month. On the other hand, growers in the southern Malaysian state of Johor are concerned that after many days of heavy rain, stagnant flooding could damage their palm oil yields.
Malaysian palm oil futures fell 3% on Tuesday, capping a three-day rise as traders worried about weak export demand and Indonesia maintained its domestic sales restriction. On the Bursa Malaysia Derivatives Exchange, the benchmark palm oil contract for April delivery fell 123 ringgit, or 3.13%, to 3,813 ringgit ($894.44) a tonne.
This shows that supply is improving, as evidenced by higher ending stocks year on year. The most active Dalian palm oil contract fell 2% and the soybean oil contract fell 0.5%. On the Chicago Stock Exchange, soybean oil prices fell 0.6%.
The palm of the hand falls from a maximum near three weeks
Due to a public holiday, Malaysia’s financial markets will be closed on Wednesday. Trading will start again on February 2. After a session in which they hit their highest level in more than three weeks, Malaysian palm oil futures fell on Tuesday as traders worried about weak export demand ahead of the cargo survey data. . After rising for three days, the benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 39 ringgit (0.99%) to 3,897 ringgit ($917.59) a tonne in the first few days. operations.
The most active Dalian palm oil contract fell 1.3%, while the soybean oil contract fell 0.5%. Soybean oil prices rose 0.1% on the Chicago Stock Exchange. As they compete for a share of the global vegetable oil market, palm oil is affected by changes in the prices of related oils. Palm oil may test support at RM3,888 per tonne; a gap below that level could amount to RM3,796.
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