Palm oil slips again as October exports weaken

October 12, 2021: Malaysian palm oil futures eased for a second straight session on Tuesday as a slump in early October exports outweighed tightening inventories.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 61 ringgit, or 1.23%, to 4,894 ringgit ($1,173.90) a tonne during early trade.

FUNDAMENTALS

Exports of Malaysian palm oil products for Oct. 1-10 fell 7.49% to 500,381 tonnes from the same period in September, according to independent inspection company AmSpec Agri Malaysia on Monday.

Malaysia's end-September palm oil stocks fell more sharply than expected, down nearly 7% from the month before, as export demand surged while production stayed flat, Malaysian Palm Oil Board data showed on Monday.

Dalian's most active soy oil contract fell 0.9%, while its palm oil contract slipped 1.4%. Soyoil prices on the Chicago Board of Trade were down 0.07%.

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 extend its gains into 5,032-5,048 ringgit per tonne, as it has broken a key resistance at 4,909 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

Oil prices fell for the first time in four days on Tuesday, after weeks of gains fuelled by a rebound in global demand that is contributing to energy shortages in economies from Europe to Asia.

Asian shares dropped and the safe-haven dollar held firm on Tuesday, as a global energy crunch fuelled inflation fears, clouding investor sentiment before the U.S. corporate earnings season.

Reuters

Posted on: 2021-10-12T09:34:31+05:00

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