Palm oil slips for second day as early-Jan exports slump

January 17, 2022: Malaysian palm oil futures extended losses for a second straight session on Monday after cargo surveyors' data showed exports during the first half of January tumbled.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slid 35 ringgit, or 0.71%, to 4,921 ringgit ($1,175.87) a tonne during early trade, its lowest since Jan 5.

Bursa Malaysia will be closed on Tuesday for the Thaipusam festival.

FUNDAMENTALS

* Exports from the world's second-largest palm oil producer during Jan. 1-15 fell between 32% and 45% from the same period in December, cargo surveyors said on Saturday.

* Malaysia kept its February export tax for crude palm oil at 8% but lowered the reference price to 4,907.14 ringgit ($1,172.55) from 5302.01 ringgit in January.

* Dalian's most-active soyoil contract rose 0.1%, while its palm oil contract slipped 0.2%. The Chicago Board of Trade were closed for a public holiday.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Palm oil may drop to 4,865 ringgit per tonne, due to the completion of a five-wave cycle from 4,291 ringgit.

MARKET NEWS

* Asian share markets were choppy on Monday as a slew of Chinese economic data confirmed the deadening effect of coronavirus restrictions on consumer spending, prompting Beijing to again ease monetary policy.

Reuters