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.


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.


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.


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