Palm oil slips on weaker October exports; MPOB data in focus

October 11, 2021: Malaysian palm oil futures eased on Monday as early October exports declined ahead of Malaysian Palm Oil Board (MPOB) data, although the contract remained near a record high hit last week.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slid 23 ringgit, or 0.46%, to 4,943 ringgit ($1,186.51) a tonne during early trade.

FUNDAMENTALS

Exports of Malaysian palm oil products for October 1-10 fell 7.6% to 528,901 tonnes from the same period in September, cargo surveyor Intertek Testing Services said on Sunday.

The market is awaiting data from the Malaysian Palm Oil Board due later in the day with expectations of a drawdown in September inventories.

The ringgit, palm's currency of trade, rose 0.24% against the dollar after the government lifted interstate and international travel restrictions, making the commodity more expensive for holders of foreign currency.

Dalian's most active soyoil contract rose 0.5%, while its palm oil contract gained 1.3%. Soyoil prices on the Chicago Board of Trade gained 0.1%.

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

MARKET NEWS

Oil prices rose on Monday, extending multiweek gains, amid supply restraints from major producers and growing demand for fuels as economies try to recover from the COVID-19 pandemic.

Asian shares rallied on Monday courtesy of gains in China which also helped U.S. stock futures pare early losses while rising Treasury yields lifted the dollar to a near three-year peak against the Japanese yen.

Reuters