JAKARTA: Malaysian palm oil futures fell on Thursday, mirroring losses in the Dalian soyoil contract, as the market awaited upcoming export and production data from the Malaysian Palm Oil Board (MPOB).
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange declined by 15 ringgit, or 0.37%, closing at 4,067 ringgit ($864.03) per metric ton.
“Ahead of the MPOB’s release of export data and production figures, the futures market is being influenced by external factors,” said a trader based in Kuala Lumpur.
A Reuters survey indicated that Malaysia’s palm oil inventories, the world’s second-largest, increased for the third consecutive month in June due to slower exports, while production decreased compared to the previous month. The median estimate from 12 traders, planters, and analysts placed Malaysia’s palm oil stocks at 1.83 million metric tons, up 4.53% from the end of May.
The official MPOB data is expected to be released on July 10.
In other markets, Dalian’s most-active soyoil contract fell by 0.50%, while its palm oil contract rose slightly by 0.05%. The Chicago Board of Trade was closed in observance of Independence Day.
Palm oil prices are affected by fluctuations in related oils, as they vie for a share of the global vegetable oils market.
Meanwhile, India’s palm oil imports rose by 3% in June, reaching a six-month high due to increased demand from refiners preparing for upcoming festivals and as palm oil traded at a discount compared to other vegetable oils.
Additionally, crude oil prices edged lower on Thursday, retreating from the previous session’s multi-month highs. Investors took profits, focusing on demand caution despite a decline in U.S. inventories last week. Higher crude oil futures make palm oil a more attractive option for biodiesel production.
