July 13, 2023 (MLN): Malaysian palm oil fell significantly on Thursday as the market weighed on the forecast of improving production in Malaysia, the world's second-largest producer.
The benchmark palm oil contract is down by 2.32% to 3,835 ringgit a tonne.
Moreover, the projections of an all-time high U.S. soybean output, further suppressed sentiment.
"We have a mix bag of variables which are bullish and bearish, juxtaposed between both these poles, the market will continue to remain uncertain and volatile," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari, Reuters reported.
Malaysian production is showing signs of improvement and the ringgit is strengthening against the dollar, he added.
In related oils, the U.S. Department of Agriculture said on Wednesday that U.S. farmers will harvest massive crops of both corn and soybeans this year, boosting the supply base despite drought conditions stressing plants during the early stages of development.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
